After the close of Thursday, Amazon.com (AMZN) released Q3 earnings that smashed estimates and sent shares soaring in the post market.
The online retailer posted earnings per share of 52 cents on $43.7 billion in revenues. This is compared to analyst estimates of just $41.6 billion in revenues.
This is a nice surprise for investors, especially in a third quarter release because this is a quarter where Amazon usually spends a lot of money getting ready for the holidays.
Technical Analysis
As you can see in the 5-minute chart above, shares of $AMZN absolutely skyrockted after earnings dropped with current prices sitting at an almost 9% increase from Thursday’s close.
Expect shares to be very volatile Friday with heavy volume and large range. If you are looking to trade it you’ll want to look at $1083.31 as the first major resistance level. After that we will be in unchartered territory and will have to look at whole and half dollar levels for potential resistance.
Support will be first found at the premarket pivot of $1,050 and $1,040. After that we will need to watch the 20-EMA at $1,035.99 followed up by $1,011.47.
It may be a good idea to let prices stabilize after the open in order to find a good entry and make sure to place hard stops as this will be moving fast!
