In what should be an exciting time of the year for Amazon ( AMZN) we find this name struggling mightily to find its way.
The summer is often when shoppers hit the streets hard but also a time when Amazon really starts to get momentum. Next month is their Prime Day shopping event, and earlier this week more good news: Amazon announced a second Prime Day will be later in the fall.
Yet the stock is not responding to the positives and remains under severe selling pressure.
The weekly chart, from Trendspider, below, reflects the bearish sentiment. Money flow has been leaking since summer 2021, and the price action has been awful as well. There is some support, however, lining up around the current price, and if the $100 level holds firm we could see a nice base built. The double top is clearly evident by the blue box.
The daily chart (chaikin, blue), below, is already in base building mode from late April. The indicators, however, are all leaning bearish, so we'll see if there is some sideways action here before a move back up towards $120. The entire group is bearish and weak, so Amazon should not be the exception.
The area just above $125 here is strong resistance (arrow) and will be a challenge to overcome.
