Benzinga
Published Jun 06, 2022 16:57
Updated Jun 06, 2022 17:40
Here's How Amazon's Chart Looks Following 20-1 Stock Split
Amazon.com, Inc (NASDAQ: NASDAQ:AMZN) appeared to be trading more than 94% lower in the premarket, but the new $125 price tag on the stock is due to a 20-1 stock split, which took effect on Monday after being announced in March.
The stock split prompted analysts to adjust their price targets on Amazon, with Morgan Stanley (NYSE:MS) maintaining its Overweight rating and adjusting the price target to $175 and MKM Partners maintaining its Buy rating on the stock and adjusting the price target to $180.
Amazon’s adjusted share price makes investing in the stock more affordable for retail traders, and on Monday Amazon was shooting up almost 5% higher, which caused the stock to break up from a bull flag pattern on the daily chart.
The bull flag pattern is created with a sharp rise higher forming the pole, which is then followed by a consolidation pattern that brings the stock lower between a channel with parallel lines or into a tightening triangle pattern.
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See Also: Amazon Stock Begins Trading On Split-Adjusted Basis: What Investors Need To Know
The Amazon Chart: Amazon’s bull flag pattern was created between May 24 and Friday, with the pole formed between May 24 and June 1 and the flag printed over the two trading days that followed. The measured move the break from the pattern is 23%, which indicates Amazon could soar up toward the $148 level in the future, although retracements to form higher lows are likely along the way.
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