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- 1 Amazon stock closed at $135.36 while witnessing a loss of 1.39% during the last intraday trading session.
- 2 Amazon and Shopify agreed on terms to allow Shopify merchants to use “Buy with Prime”.
- 3 Amazon might face the United States Federal Trade Commission (FTC) antitrust lawsuit in September.
AMZN stock has been in a strong uptrend, forming higher lows, since the start of 2023, springing up from the low of $84. On August 4, the stock price made an annual high at $143.63 after which it witnessed a retracement.
Recently, AMZN stock formed support at $131.35 and initiated a bullish rally in order to retest the resistance level of $$142.50 but the move was halted at $140.
For the last three days, Amazon stock has been printing bearish candles after facing rejection from $140. AMZN stock price is headed in the direction of recent support of $131.35. If the bearish momentum continues, the price might melt down toward the recent support.
For the stock price to regain bullish momentum, it needs to form strong support. If bears can push the price below $131.35, the stock price might melt down toward the next support level of $126.30.
Amazon Just Struck A Deal With Shopify
Shopify merchants will soon have an easy and approved way to offer Amazon’s “Buy with Prime” to customers at checkout. Buy with Prime was launched last year to allow customers on websites outside of amazon.com to use their Prime membership to receive fast shipping and make payments with Amazon Wallet.
The new deal concedes valuable payment processing revenue to Shopify while it helps Amazon gain access to Shopify merchants and customers, expanding its logistics.
The deal also helps Amazon in utilizing its logistics network more efficiently.
The European Commission on 6th September named Amazon as one of the gatekeepers under the Digital Market Act. The commission also stated that the gatekeepers have been designated to prevent them from imposing unfair conditions on businesses and users.
Amazon is likely to face a lawsuit by the United States Federal Trade Commission (FTC) in September, following the complaints from merchants on its e-commerce site over its alleged anticompetitive practices.
Will AMZN Stock Fall to the $131 Level?
The stock price is on the verge of crossing the 20-day EMA negatively, which indicates a rise in bearish momentum. Chaikin money flow score is on a downward slope and stands at 0.03, indicating slight weakness in the market.
The relative strength index stands at 51.43, hovering near the neutral territory indicating the same pressure from the buying and selling side.
Conclusion
Amazon stock has witnessed a year-to-date return of 58.39%. The current pullback might just be a slight correction for the price to form a strong support and regain bullish momentum. Technical parameters are currently favoring the selling side. Previously, it has been seen that the stock dips below the 20-day EMA and receives support from the 50-day EMA.
Technical Levels
- Major support: $131.35 and $126.30
- Major resistance: $142.50 and $145
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They 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.
