AMZN Stock May Slip Below $3,000
$Amazon(AMZN.US$Given the technical setup, there is a good chance the stock does stay below $3,500 and potentially goes lower. Since mid-July, the shares have been trading lower and have yet to recover from their weaker than expected second-quarter earnings announcement. When combined with a strong level of technical support around $3,200, the downtrend creates a bearish technical pattern known as a descending triangle.
Additionally, the relative strength index has been trending lower in the same direction of the stock since the middle of July. It would suggest that momentum in the stock has turned bearish.
When measuring the triangle's height to the base, it amounts to nearly $560 points or roughly 15%. A similar decline would target a drop to approximately $2,630. Now, that doesn't mean the stock will fall that far, but it is more guidance on how much it could fall. There are some key levels of support before that at $3,020 and $2,880, which could serve as a place to stop on a decline.
Overall, this could be a pivotal quarter for Amazon. With plateauing in retail sales and potential weakness in the cloud business, investors may not be very pleasant.
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MarvanLoveMuffin : Amazon is one of the few companies with a massive moat capable of double digit growth annually for decades to come. You would have to be a fool to be scared off by this article.
yailea : Amazon has traded sideways this entire pandemic. A weak quarter in aws is already priced in. There is no downside in Amazon at the moment. Ignore this FUD article. Amazon is one of the most unique and growth focused companies in our countries great history. Buy and hold. Don't buy into the FUD!