Believe it or not, Amazon.com is little changed since July 2020. Now it faces an uphill struggle as a new year begins.
The first pattern jumping off the chart is the downward-sloping trendline that began shortly before Thanksgiving. AMZN steadily trending lower as the broader market hit new highs suggests investors have shifted away from the e-commerce giant in favor of new sectors.
Second, the decline followed a bearish reversal above $3,700. That’s near the earlier peak from the summer, resulting in a potential double-top reversal pattern.
Third, notice how prices previously bounced at the 200-day simple moving average (SMA). But in December buyers were less eager to defend that line.
Finally, AMZN declined after its last two quarterly reports. (Both featured top-line misses and weak guidance.) The fundamental story could also be less stellar in a post-Covid world, especially with AWS growth slowing and costs rising.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The first pattern jumping off the chart is the downward-sloping trendline that began shortly before Thanksgiving. AMZN steadily trending lower as the broader market hit new highs suggests investors have shifted away from the e-commerce giant in favor of new sectors.
Second, the decline followed a bearish reversal above $3,700. That’s near the earlier peak from the summer, resulting in a potential double-top reversal pattern.
Third, notice how prices previously bounced at the 200-day simple moving average (SMA). But in December buyers were less eager to defend that line.
Finally, AMZN declined after its last two quarterly reports. (Both featured top-line misses and weak guidance.) The fundamental story could also be less stellar in a post-Covid world, especially with AWS growth slowing and costs rising.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
