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- Amazon stock price is moving down under a falling parallel channel.
- The $80 level is seen as the next major support level.
- Sellers have an important defense zone at $100.
The price of NASDAQ:Amazon (AMZN) rebounded in the early trading session following the letter dated December 23. As a result, the purchasers successfully closed the day price at $85.25 with a 1.74% gain. This positive correction occurred as global markets finished the weekend marginally higher.
Amazon’s stock price has been one of the best-performing stocks in the last decade, but 2022 has been a nightmare for the digital powerhouse. Revenue growth has reached an all-time low, and the company just announced the layoff of 10,000 corporate personnel.
However, Amazon share price is again trending towards affordable prices. In fact, after recording almost 49% loss till date, the stock valuation shows an indicator of more downtrend due to its latent price pattern.
Will Inflation Data Affect Amazon Stock Price Trend Next Week?
NASDAQ Price Action: AMZN forms consistent lower-highs and lower-low trendlines in terms of the daily price scale. Thus the price shows a falling parallel channel (above the chart). Meanwhile, Amazon stock price has hit a two-year low of $80, where bulls will pay for a rebound. Conversely, the conceptual round level of $100 has become an important protection zone for the bears.
Buyers need to rid themselves of the bearish price pattern at the earliest. Otherwise, the two-year low is not far from the current trading price. Trading volume is substantial as the daily volume bar remains above average volume.
The RSI indicator appears to be sideways just above the oversold zone. When the MACD appears flat in the negative zone. Both of these traditional indicators do not provide a reliable signal. Specifically, the ADX indicator is below 25, suggesting less strength in the bearish trend.
Conclusion
Average Directional Index (ADX) according to NASDAQ: AMAZON stock price has shrugged off the strength of the bearish trend. As of now, AMZN share price remains near the two-year low of $80, which could be re-tested before a typical upside rally.
Support level – $80 and $50
Resistance level – $100 and $150
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
