AMZN, WMT and TGT Forecasts – Retail Looks Like it is Trying to Recover

AMZN Technical Analysis

Amazon looks like it’s going to jump at the open on Wednesday after pulling back for a couple of weeks. Quite frankly, I think this is a classic pullback and continuation play with Amazon, of course, being one of the mainstays on Wall Street.

Keep in mind that the resiliency of the US consumer has been a mainstay of the thesis on Wall Street going back decades, and Amazon is one of the first places to play that. Furthermore, we just had the meeting between Donald Trump and the Chinese delegation that, although it didn’t create anything new, it didn’t make anything worse, and I think that’s part of what might make Amazon a little bit of interesting here as well.

Interest rates in America continue to climb and while that can hurt many stocks out there, Amazon might have a little bit of a buffer just considering how many people use it.

WMT Technical Analysis

Speaking of buffers to higher interest rates, Walmart is a classic play for that as it is a place where consumers can find deals in the United States and, of course, it looks like it’s trying to break out. But keep in mind, we do have an earnings call Thursday morning.

So, breaking above the swing high opens up the possibility of the market going to the $140 level. Short-term pullbacks at this point in time are buying opportunities from what I see, with the 50-day EMA sitting right around the $128 level being your floor.

TGT Technical Analysis

Target looks like it’s really going to jump and that, of course, will be with earnings coming out.

It certainly looks like traders are anticipating a bigger move to the upside. If we can clear the $133.50 level, Target is off to the races.

Notice that we have jumped from the 50-day EMA and, of course, have been in a nice uptrend since the middle of November. I think we’re going to see continuation on Target, which, quite frankly, I haven’t heard many people talking about. This shows you what people think about the US economy and the US consumer despite a lot of the noise you hear about online.

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