Is Amazon Primed to Reach Its Record High Again?

With social distancing in full effect to curb the spread of the coronavirus, more shoppers are looking to online stores like Amazon in order to obtain basic goods. From a technical analysis standpoint, Todd Gordon, managing director at Ascent Wealth Partners, is noticing that Amazon’s weekly and daily charts show that the online retail giant could re-test its record highs.

When it comes to its weekly chart, Amazon is trading sideways–something that most investors would take in a market that’s been depressed by sell-offs. Furthermore, Amazon is trading above its 200-day and 50-day moving averages, which is an anomaly in today’s market.

This same trend is apparent in its daily chart as well. It bodes well for exchange-traded funds (ETFs) that are well-positioned for the move via Amazon holdings.

“The technicals and demand for Amazon’s online shopping business and cloud services — especially by the likes of big names like Netflix and Slack — make it prime to push higher back to the $2,100 mark,” a CNBC report noted. “That would put it on the path to return to its February record of $2,186. These bullish indicators have led Gordon and his firm to hold Amazon in their portfolios. He advises that as much as investors can buy the name outright, they can also use options to play the nearly $2,000 stock.”

Given the latest moves by the online retail giant, here are three ETFs to consider with Amazon exposure:

  1. Consumer Discret Sel Sect SPDR ETF (NYSEArca: XLY): seeks investment results that correspond to the price and yield performance of publicly traded equity securities of companies in the Consumer Discretionary Select Sector Index. The index includes securities of companies from the following industries: retail; hotels, restaurants and leisure; textiles, apparel, and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services.
  2. ProShares Online Retail ETF (NYSEArca: ONLN): seeks investment results, before fees and expenses, that track the performance of the ProShares Online Retail Index. The index tracks retailers that principally sell online or through other non-store channels. The index uses a modified market-capitalization weighted approach, is rebalanced monthly and is reconstituted annually.
  3. Fidelity MSCI Consumer Discretionary Index ETF (FDIS): seeks to provide investment returns that correspond generally to the performance of the MSCI USA IMI Consumer Discretionary Index. The index represents the performance of the consumer discretionary sector in the U.S. equity market.

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