Is Amazon stock still a buy after falling -7.56% on Friday ?StockInvest.us, 1 month ago
The Amazon stock price fell by -7.56% on the last day (Friday, 30th Jul 2021) from $3 599.92 to $3 327.59. and has now fallen 3 days in a row. During the day the stock fluctuated 1.85% from a day low at $3 306.98 to a day high of $3 368.14. The price has risen in 6 of the last 10 days, but is still down by -6.88% for this period. Volume has increased on the last day by 6 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, 10 million shares were bought and sold for approximately $32.89 billion.
On July 30, 2021 "Bank of America" gave "$4,350.00 - $4,250.00" rating for AMZN. The price target was changed from $3,340.08 to 7.2%.
Given the current short-term trend, the stock is expected to rise 15.05% during the next 3 months and, with a 90% probability hold a price between $3 828.39 and $4 442.93 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. On corrections up, there will be some resistance from the lines at $3 596.96 and $3 545.35. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Thursday, July 08, 2021, and so far it has fallen -10.82%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 months 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.
Amazon finds support from accumulated volume at $3 311.87 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 $61.16 (1.85%) between high and low. For the last week, the stock has had a daily average volatility of 1.99%.
Amazon is oversold on RSI14 (22). 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.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.