Evaluation of Amazon stock downgraded after the last trading session.

StockInvest.us, 3 weeks ago


The Amazon stock price fell by -1.86% on the last day (Monday, 24th Jun 2024) from $189.08 to $185.57. During the last trading day the stock fluctuated 3.05% from a day low at $185.33 to a day high of $190.99. The price has been going up and down for this period, and there has been a 0.69% gain for the last 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -21 million shares and in total, 49 million shares were bought and sold for approximately $9.05 billion.

On Jun 11, 2024, it was reported that Bank of America Securities gave AMZN a "Buy" grade with a "hold" action.

The stock is moving within a horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Amazon stock with a 90% probability to be traded between $179.12 and $195.35 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.


The Amazon stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $185.02 and $184.36. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Friday, June 21, 2024, and so far it has fallen -1.86%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Amazon finds support from accumulated volume at $181.28 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $5.66 between high and low, or 3.05%. For the last week the stock has had daily average volatility of 2.12%.

Amazon holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Hold/Accumulate candidate.

Check full Amazon forecast and analysis here.