Amazon.com has rebounded from a drop, but some traders may think the e-commerce giant will give back some of its recent gains.
The first pattern on today’s chart is the $181.87 level. It was the low immediately before earnings came out and represented the approximate high last week. Has old support become new resistance?
Second, Wall Street wasn’t thrilled with the quarterly numbers. (Revenue and guidance were light.) AMZN had its biggest drop since April 2022 as a result. That could make some buyers wait for retests.
Next, stochastics are dipping from an overbought condition.
Fourth, this month’s low and last week’s high could be mapping out the early stages of a falling channel.
Finally, the 8-day exponential moving average (EMA) could be getting stuck below the 21-day EMA. That’s a potentially bearish short-term trend signal.
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