LONDON: Shares of Amazon Inc were relative outperformers during the trading session. The stock was higher by close to 1.33 percent on the back of above average volumes. The price action on the back of above average volumes is a clear indication of the shift of momentum towards the buy side.
The outperformance in the stock was on the back of reports which suggested that Amazon.com was a prime beneficiary of holiday shoppers going online for their shopping needs. The company said that it had shipped a record number of items worldwide for the holidays with Christmas Eve being the biggest day ever for deliveries using the company’s Prime Now service.
The announcement comes on the back of reports which suggested that Americans spent more on items like furniture during the holidays this year with online shopping in particular witnessing a huge spike indicative of the consumer preference shifting towards ecommerce websites compared to brick and mortar stores.
According to the MasterCard Spending Pulse report, it was reported that overall spending rose by close to 7.9 percent as compared to the same period last year. The period in question being the holiday season, kicking off from Black Friday up until Christmas Eve. The report showed that online shopping sales surged by close to 20 percent.
When looking at the charts for Amazon Inc, the stock has been in a strong uptrend since the beginning of the year. The stock has been forming higher highs and higher lows indicative of the strong buying interest.
The stock trades above all important daily moving averages which is considered to be a bullish sign. The relative strength index has given a buy signal on the back of the price volume action witnessed during the trading session which is seen as a huge positive by traders.
