Amazon Stock Plummets After Earnings Report
During the last trading session, Amazon's stock dropped by more than 3.5%, bringing its price below $230 per share. This sharp decline followed the company's quarterly earnings release yesterday, where it reported earnings of $1.86 per share, surpassing the expected $1.49, and revenue of $187.79 billion, slightly above the $187.30 billion projected.
However, investors were disappointed by the company’s sales growth forecast of only 5% for the first quarter of this year, along with a warning about a negative foreign exchange impact exceeding $2 billion. This has led to a decline in confidence, reinforcing a persistent bearish bias in Amazon’s stock price.
Bearish Trend Strengthens
Currently, a significant downward trendline has been in place since the last months of 2024. But the recent sell-off has raised doubts about the buying strength seen in previous sessions. If bearish pressure continues to increase, it could pose a considerable risk to the current market structure in the short term.
Neutrality Begins to Take Over
Both the RSI and CCI indicators have quickly dropped to their respective neutral levels—50 for RSI and 0 for CCI. This suggests that recent price movements have turned neutral, making it unclear which force is currently dominating the market. If these indicators continue to hold within neutral territory, a potential sideways consolidation could emerge on the daily chart.
Key Levels to Watch:
By Julian Pineda, CFA – Market Analyst
However, investors were disappointed by the company’s sales growth forecast of only 5% for the first quarter of this year, along with a warning about a negative foreign exchange impact exceeding $2 billion. This has led to a decline in confidence, reinforcing a persistent bearish bias in Amazon’s stock price.
Bearish Trend Strengthens
Currently, a significant downward trendline has been in place since the last months of 2024. But the recent sell-off has raised doubts about the buying strength seen in previous sessions. If bearish pressure continues to increase, it could pose a considerable risk to the current market structure in the short term.
Neutrality Begins to Take Over
Both the RSI and CCI indicators have quickly dropped to their respective neutral levels—50 for RSI and 0 for CCI. This suggests that recent price movements have turned neutral, making it unclear which force is currently dominating the market. If these indicators continue to hold within neutral territory, a potential sideways consolidation could emerge on the daily chart.
Key Levels to Watch:
- $240 – The most important resistance level, representing the latest highs recorded by the stock. A breakout above this zone could reignite the long-term uptrend from last year and trigger sustained buying pressure.
- $228 – A critical support zone that aligns with previous lows, as well as the uptrend line. If sellers push the price below this level, the bearish bias could strengthen, leading to a deeper downside correction in the short term.
- $216 – Final support level, corresponding to the January lows and the Ichimoku cloud barrier in the short term. If selling pressure drags the price to this level, it could invalidate the current bullish structure on the chart.
By Julian Pineda, CFA – Market Analyst
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.