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“My name is Bond, James Bond” is possibly one of the most famous phrases in the history of cinema. Now, one of the most viewed sagas, loved by fans throughout the world, could be coming to Amazon Prime Video, after the company chaired by Jeff Bezos announced yesterday the purchase of the popular Metro Goldwyn Mayer for $8.45 billion.

This important development takes place just a few days after AT&T announced the agreement reached with Discovery for the WarnerMedia merger, in what is undoubtedly the latest significant move in the fierce battle that we have been observing in recent years in the entertainment industry. Streaming market giants such as Netflix (NFLX), Disney (DIS), AT&T (T) (through Warner Media and HBO), Apple TV and Amazon (AMZN) all compete in a crowded and competitive marketplace for those all-important subscribers.

Meanwhile, this agreement provides Amazon with access to an important catalogue of movies, programmes and series, with the clear objective of enhancing its service offering. It builds on the agreements reached in the past to broadcast sporting events, such as the one signed with the American Football League (NFL) for $1 billion dollars annually, along with its own productions such as the long-awaited Lord of the Rings series (featuring a budget of €390 million for the first season).

Technically speaking, if we focus on the daily chart, we can see that since September 2020 Amazon is following an important lateral channel between its all-time highs in the green band and the red band at the level of $2875/2880 per share.

Currently, we can see that the price is in a new upward momentum in the intermediate zone of said lateral channel after bouncing off its uptrend line, which currently acts as its main support level. The loss of this trend line would open the doors to face its 200-session moving average (in red), with its next level of support being the lower red band.

If the price manages to maintain current levels, it could be interpreted as a possible channel failure, which could imply bullish strength in order to face its all-time highs.

Source: Admiral Markets MetaTrader 5. Amazon daily chart. Data range: from January 13, 2020 to May 27, 2021. Prepared on May 27, 2021 at 11:00 am CEST. Keep in mind that past returns do not guarantee future returns.