Technical Analysis – Amazon stock hovers in sideways channel after bearish trend
Amazon stock has been developing within a trading range of 99.70-127.20 before the earnings release on Thursday and is showing some negative signs from the technical indicators. The RSI is pointing downwards around the neutral threshold of 50, while the stochastic oscillator is heading south after a bearish crossover within its %K and %D lines.
Should the selling forces strengthen, the 50-day simple moving average (SMA) at 112.53 will come under the spotlight. The 105.90 support could next add some footing ahead of the lower surface of the sideways channel at 99.70.
Alternatively, a move higher could take the market towards the next restrictive region of 124.80-127.20, while a climb above it would brighten the outlook to positive, pushing the price towards the 100-day SMA at 129.10 and the 133.00 resistance.In brief, Amazon stock is facing a neutral bias, where a drop below 99.70 is expected to enhance selling interest.
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.