Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

“Cyber Week” Sales Slip: Can Amazon (AMZN) Hold $3500?

By Matthew WellerStock MarketsDec 02, 2021 05:43
“Cyber Week” Sales Slip: Can Amazon (AMZN) Hold $3500?
By Matthew Weller   |  Dec 02, 2021 05:43
Saved. See Saved Items.
This article has already been saved in your Saved Items

Last week, hopes were running high that the critical “Cyber 5” days between Thanksgiving and Cyber Monday would show record retail sales figures, but the early results we’re seeing point to a slight disappointment. According to the Adobe Digital Economy Index, US consumers are estimated to have spent $10.7B on Cyber Monday, a -1.4% decline from last year’s reading. This comes on the back of a similarly slight decline in Black Friday spending, which is estimated to have fallen to $8.9B from $9.0B last year.

So what happened? Why are consumers reining in spending?

Well, for one, they may not be spending less, but rather spending earlier. According to the same Adobe (NASDAQ:ADBE) Digital Economy figures, online consumer spending through the first four weeks of November actually rose over 20% this year to $7.6B! In other words, US consumers appear to have accelerated their purchases to earlier in the month to avoid the risk of shipping delays amidst the ongoing global supply chain disruptions.

In a related development, retailers have been more cautious about offering deep discounts as their own costs are rising. According to Salesforce, the average Cyber Week discount for all the goods it tracks was 23%, down from 30%+ in previous years. With less dramatic price cuts than in previous years, consumers may have opted to hold off on big ticket purchases at the margin.

Finally, it’s worth noting that these so-called “real time” measures of sales data are notoriously volatile and prone to revisions, so readers should take any early analysis with a big grain of salt; in fact, there are even some alternative estimates that this weekend’s retail sales have risen modestly relative to past years. Regardless, it looks like this year’s Cyber 5 sales were not the blowout figures some analysts were expecting, and that, along with the uncertainty around the Omicron variant, has traders exercising caution this week.

Market impact

Of course, when any time you’re talking about online sales, the proverbial elephant in the room is (NASDAQ:AMZN). Despite a strong year for the overall indices, the massive retailer is trading unchanged from its September 2020 peak after failing to garner any meaningful momentum over the last 15 months.

Moving forward, the key level to watch for AMZN will be around $3500. This critical area served as resistance for prices through the first half of the year, then support in mid-July, then resistance again in September, and now appears to be providing a modicum of support for “The Everything Store.” If the $3500 area is conclusively broken, AMZN could quickly fall toward its 200-day EMA near $3350 next.

Amazon Daily Chart
Amazon Daily Chart

Source: StoneX, TradingView

Original Post

“Cyber Week” Sales Slip: Can Amazon (AMZN) Hold $3500?

Related Articles

“Cyber Week” Sales Slip: Can Amazon (AMZN) Hold $3500?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email