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- 1 AMZN stock was unable to manage the gains near the resistance mark of $130.
- 2 Bulls faced rejection multiple times and slumped toward 20 day EMA.
The retail giant Amazon (AMZN) price is hovering near the supply zone of $130, facing strong resistance there. The bears maintained a firm grip which led to a rejection in price from the past months. The price took support on 20-day EMA and held on to it.
Amazon is all set to release its Q2 earnings results next week, on July 27. Analysts expect a positive reflection this time from the market leader with an increase in revenues and a growth outlook.
Moreover, the trend was intact, and buyers were in trouble due to the rejections and bearish signals on the charts. The chart shows that AMZN stock price has persisted in trading in the narrow range but does not leave the upper neckline above $132, which buyers cannot surpass.
The chart shows a rounding bottom pattern; the stock recovered from the lows of $80 in the past months. Furthermore, the buyers persisted in accumulating the stock and tried to escape the resistance zone.
However, the sellers are not giving buyers a chance, and the battle continues, leading to the price being stuck in the narrow range. As per the technicals, Analysts maintain a strong buy rating for AMZN stock with yearly targets of $144. The analysts’ ratings is a clear indication that the fundamentals of the stock are sound.
Technical Analysis: AMZN Stock Not At Its Best
Amazon(dot)com, Inc. is a multinational technology company which engages in the provision of online retail shopping services. It operates through the following segments: North America, International, and Amazon Web Services (AWS).
The North America segment is involved in the retail sales of consumer products including from sellers and subscriptions through North America-focused online and physical stores. It also includes export sales from online stores. The International segment focuses on the amounts earned from retail sales of consumer products including from sellers and subscriptions through internationally-focused online stores.
The AWS segment consists of global sales of storage, database, and other services for start-ups, enterprises, government agencies, and academic institutions.
AMZN Stock Shows Sellers Attainability On Daily Charts
On the daily charts, AMZN stock price paused the resistance mark and retested the 20-day EMA, which shows signs of rejection from the top.
At press time, AMZN stock price was traded at $129.96 with an intraday drop of 3.96% showing overnight selling pressure. Notably, the broader market for most of the sectoral leaders showed panic selling in yesterday’s session. Moreover, the trading volume is 59.821 Million, and the market cap is $1.333 Trillion.
The trend shows above-neutral indications, and a further rise in the upcoming sessions can be witnessed. Amazon stock price must surpass $135 to boost the ride beyond the sellers’ vision.
The RSI curve dragged from the overbought zone and is headed toward neutrality showing a negative crossover on the charts suggesting a massive short seller influx.
Conclusion
Amazon (AMZN stock) price dragged the gains toward the support region and showed a lack of strength to beat the mighty bears.
Technical Levels:
Support Levels: $120
Resistance Levels:$135
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
