Is Amazon stock still a buy after falling -7.06% on Tuesday ?StockInvest.us, 2 weeks ago
The Amazon stock price fell by -7.06% on the last day (Tuesday, 13th Sep 2022) from $136.45 to $126.82. During the last trading day the stock fluctuated 4.06% from a day low at $126.27 to a day high of $131.40. The price has been going up and down for this period, and there has been a -2.29% loss for the last 2 weeks. Volume has increased on the last day by 18 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 72 million shares were bought and sold for approximately $9.13 billion.
Deutsche Bank is very positive about AMZN and gave it a "$155.00 - $175.00" rating on Jul 29, 2022. The price target was changed from 155 to 175.Over the last 90 days, this security got 17 buy, 14 sell, and 0 hold ratings.
Given the current short-term trend, the stock is expected to rise 27.37% during the next 3 months and, with a 90% probability hold a price between $161.53 and $197.40 at the end of this 3-month period.
There are few to no technical positive signals at the moment. The Amazon stock holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $129.92 and $134.04. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Tuesday, August 16, 2022, and so far it has fallen -12.41%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.
On the downside, the stock finds support just below today's level from accumulated volume at $107.67 and $106.22.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Amazon finds support just below today's level at $107.67. If this is broken, then the next support from accumulated volume will be at $106.22 and $106.21.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $5.13 between high and low, or 4.06%. For the last week, the stock has had daily average volatility of 2.84%.
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.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Sell candidate.Check full Amazon forecast and analysis here.