Weaker technical forecast for Amazon as stock downgraded to Hold/Accumulate

The Amazon stock price gained 3.80% on the last trading day (Wednesday, 6th Nov 2024), rising from $199.50 to $207.09. During the last trading day the stock fluctuated 4.17% from a day low at $199.14 to a day high of $207.45. The price has risen in 8 of the last 10 days and is up by 12.12% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 40 million more shares were traded than the day before. In total, 70 million shares were bought and sold for approximately $14.41 billion.

On Nov 01, 2024, it was reported that Maxim Group gave AMZN a "Buy" grade with a "hold" action.

The stock has broken the strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $205.87, a level that may pose a second chance to hit a runner. According to fan-theory $223.83 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.

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 $195.75 and $189.28. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, October 07, 2024, and so far it has risen 14.54%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

Amazon finds support from accumulated volume at $197.93 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 $8.31 (4.17%) between high and low. For the last week, the stock has had daily average volatility of 2.47%.

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.