Green day on Monday for Amazon

The Amazon stock price gained 0.12% on the last trading day (Monday, 2nd Aug 2021), rising from $3 327.59 to $3 331.48. During the day the stock fluctuated 1.26% from a day low at $3 317.00 to a day high of $3 358.92. The price has risen in 7 of the last 10 days, but is still down by -6.14% for this period. Volume fell on the last day by -7 million shares and in total, 3 million shares were bought and sold for approximately $10.90 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

On July 30, 2021 "Jefferies Financial Group" gave "$4,200.00" rating for AMZN. The price target was changed from $3,354.98 to 6.8%.

The stock has broken the wide and strong rising short-term trend down. This signalizes a slower rate of rising, but may also be an early warning about a possible trend shift. Due to the trend being broken there will now be resistance at the bottom line of the trend at $3 335.24. A reaction back to this level may hold a second chance to get out before further falls.

A buy signal was issued from a pivot bottom point on Friday, July 30, 2021, and so far it has risen 0.12%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Amazon stock holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at $3 553.17 and $3 544.91. A break-up above any of these levels will issue buy signals. Furthermore, there is currently a sell signal from the 3 months Moving Average Convergence Divergence (MACD).

Amazon finds support from accumulated volume at $3 327.59 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $41.92 (1.26%) between high and low. For the last week, the stock has had a daily average volatility of 1.89%.

Amazon is oversold on RSI14 (24). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.

The Amazon stock holds several negative signals and despite the positive trend, we believe Amazon will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock.