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Weaker technical forecast for Amazon as stock downgraded to Sell Candidate.

StockInvest.us, 3 weeks ago

Amazon

The Amazon stock price fell by -1.61% on the last day (Friday, 31st May 2024) from $179.32 to $176.44. It has now fallen 3 days in a row. During the last trading day the stock fluctuated 3.07% from a day low at $173.87 to a day high of $179.21. The price has fallen in 8 of the last 10 days and is down by -3.92% for this period. Volume has increased on the last day by 30 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, 58 million shares were bought and sold for approximately $10.30 billion.

On May 30, 2024, it was reported that Tigress Financial gave AMZN a "Buy" grade with a "hold" action.

The stock has broken the weak 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 $176.95. A reaction back to this level may hold a second chance to get out before further falls.

Amazon

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 $180.69 and $182.36. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Thursday, May 09, 2024, and so far it has fallen -6.89%. 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.

Amazon finds support from accumulated volume at $175.00 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 $5.34 between high and low, or 3.07%. For the last week the stock has had daily average volatility of 1.77%.

Amazon is oversold on RSI14 (17). 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 Hold/Accumulate to a Sell candidate.

Check full Amazon forecast and analysis here.