Online Retailers Warn of Disruptions in the Supply Chain

Online Retailers Warn of Disruptions in the Supply Chain

Some big companies are more vulnerable to the disruptions of the supply chain due to the outbreak.

Top online retailers rely on Chinese production that has been shut down for weeks. If China will not resume its normal operations soon, the result will be a shortage of goods. Amazon the largest e-commerce retailer in the U.S. dropped more than 8.5% since the start of the week.

Technically Amazon retest the psychological level at 2000.0. If the price will bounce from this level investors will see it as a buying opportunity. On the other hand, a drop below 2000.0 could accelerate the downturn. Alibaba has already warned this month about potential weakening earnings.  The e-commerce giant warned of lower profit this quarter because the workers cannot get to their jobs.

Crude oil inventories report will be published today at 15.30 GMT. This quarter is crucial for oil prices since there is no agreement by OPEC+ on production cuts and there might be a big drop in global oil demand amid production halt in China.

These charts and the opinions above are for educational and informational purposes only. Technical analysis does not guarantee full accuracy and it could be subject to revision over time. We do not have any liability regarding financial results based on the use of this information. 

Online Retailers Warn of Disruptions in the Supply Chain
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