Amazon Stock Chart: Will We Get an Alphabetic Reaction or a Meta Reaction?
Come to Amazon (AMZN) – Get the report from Amazon.com, Inc. earnings report, shares clearly lagged within the FAANG Group. Investor reactions, however, were varied.
netflix (NFLX) – Get the report from Netflix, Inc. plunged on its results, dropping more than 20% the day after the release and 30% over the following two days.
Then Apple (AAPL) – Get the Apple Inc. stabilized the ship with its strong post-earnings reaction, while Alphabet (GOOGL) – Get the Class A report from Alphabet Inc. (GOOG) – Get the Class C report from Alphabet Inc. shot to historic highs on its results.
Alphabet’s declaration of a 20-to-1 split even sparked speculation as to whether Amazon would also split its shares.
With Meta (MVRS) – Get meta report 25%+ drop after earnings, however, there’s just no way of knowing how Amazon will fare (here are some guesses).
Shares of Amazon were down more than 6% on Thursday and are now down on the week despite rallying nicely over the past few days. The stock has fallen in five of the past six weeks and is working on its third consecutive monthly decline (although this is at the start of the month).
Now we have to ask ourselves: Does Amazon have an Alphabet-like reaction to earnings that sends it higher or a Meta-like reaction that sends it lower?
Trading Amazon Stocks
It wasn’t that long ago – in November – that Amazon shares were trying to reach new highs. In reality, this stock was limited between $2,880 on the downside and $3,500 on the upside.
When it cleared $3,500, Amazon was able to rally back to $3,750, but that’s where the good fortune ended (and it did more than once).
After the uptrend support failed and Amazon fell below $3,175, it challenged the range support near $2,880, a level it hadn’t tested since. almost a year.
Unfortunately, the stock fell below that metric and then was rejected by her the following week.
The charts aren’t that inspiring, but we’ll see if the earnings report can change that sentiment.
Obviously, $2,880 is the key and how the stock closes this week against this level will be remarkable. But given the ranges we see, we need to look beyond that level.
On the other hand, if Amazon breaks last week’s low near $2,700, it could open the door to the $2,500 area. Just below this area we have all sorts of key metrics to watch.
There are the 200-week and 50-month moving averages, as well as the previous breakout area in the $2,450-$2,500 area.
If Amazon ends up falling this far, I would expect this zone to act as support.
On the upside, let’s see if stocks can recover $3,000 and this week’s high near $3,100.
Above $3,175 and we could see a test of the 21-week and 50-week moving averages.