Recent Price Action
Amazon.com Inc. (AMZN) has been showing signs of weakness in recent trading sessions, closing at $176.25 on September 3rd, down by 1.26% for the day. The stock has faced resistance around the $180 level, failing to break above the 50-day Simple Moving Average (SMA). This recent decline suggests that the bullish momentum from the late August rally is losing steam. The price action over the past few days has seen lower highs, indicating that sellers are gaining control. The volume accompanying this decline has been moderate, suggesting that the selling pressure, while present, has not yet escalated into a more aggressive sell-off.
Large Trend
Looking at the broader trend, AMZN has been in a choppy trading range since June 2024, following a period of volatility earlier in the year. The stock’s longer-term trend remains somewhat intact, as it is still above the 200-day SMA, which provides a crucial support level around the $160-$165 range. However, the stock’s recent struggle to maintain its position above the 50-day SMA and the downward-sloping resistance line from the July high around $200 suggests that the stock may be entering a period of consolidation or a potential downturn. The uptrend that began in January 2024 has faced multiple challenges, with the stock unable to maintain a consistent upward trajectory.
Forecasts of Supports and Resistances
Amazon’s chart presents a cautious outlook. The recent inability to break above the 50-day SMA and the subsequent decline suggest that the stock could see further downside pressure. If AMZN continues to drop, the first major support level to watch is around $170, which has provided some support in recent weeks. A break below this level could lead to a decline towards the $160-$165 area, where the 200-day SMA and long-term support from the January uptrend are located. This level would be crucial in preventing a more extended sell-off.
On the upside, if AMZN can regain momentum and break above the $180 level, it would likely face resistance around $190, where the descending trendline and the previous support turned resistance are located. A successful move above this level could open the door for a retest of the $200 range, which has been a significant resistance level in the past. However, given the current market conditions and the recent bearish momentum, the $170 support level will be critical to watch. A break below this level could signal a more prolonged downturn, while holding above it could provide a base for a potential recovery. Traders should monitor how AMZN performs around these key levels to gauge the next significant move.
