Amazon.com, Inc. (AMZN) Technical Analysis

Price Action Analysis

• The near-term price action shows a clear downtrend on the daily horizon, with the latest price around $210.11 after a pullback from highs near the mid-$240s earlier in the period. The price is trading below both key moving averages, suggesting ongoing downside pressure.
• On the daily chart, the sequence of candles has featured occasional spikes higher, but follow-through has been limited, indicating weak bullish momentum and a struggle to sustain rallies.
• The weekly structure remains in a broader, wider-range context. Price has oscillated within a long-term band roughly spanning the low-$180s to the mid-$240s over the last two years. The current price sits within the lower-to-middle portion of that range, consistent with a choppy, work-in-progress rebound attempt rather than a durable reversal.
• Candlestick structure on the daily time frame shows a mix of short-term bounce attempts followed by renewed selling pressure; no clear, sustained breakout above prior resistance levels has materialized in the immediate term.
• Overall trend context (daily) is bearish to neutral near term; the price remains below major averages and trend-respecting levels, keeping the bias tilting to the downside unless there’s a decisive, high-volume breakout above key resistance.

Technical Indicators

Summary of current readings and implications (daily perspective)

Indicator	Value	Interpretation / Implication
Price	$210.11	Enveloped by a downtrend; testing near-term support zones.
50-day Moving Average (MA50)	≈ $228.5	Price remains well below MA50, signaling short- to intermediate-term ضعف relative to this benchmark.
200-day Moving Average (MA200)	≈ $224.0	Price below MA200, indicating a bearish longer-term posture remains intact.
RSI (14)	25.3	In oversold territory, suggesting a potential near-term bounce is possible if momentum shifts, but not a guarantee of a reversal.
MACD (fast 12 / slow 26; signal 9)	MACD ≈ -8.6; Signal ≈ -7.2 (histogram ≈ -1.4)	Negative momentum with no current crossover to bullish; downside pressure remains unless a bullish divergence or a positive crossover develops.

Notes:

• The price is approximately $18–$14 below the MA50/MA200 levels (roughly 8–7% below each), underscoring the breadth of the current bearish pressure.
• RSI in the mid-20s supports an oversold reading, which occasionally precedes a counter-trend rally, but requires confirmation via price action and volume.
• MACD remains negative and below the signal line, which is consistent with ongoing momentum to the downside; a sustained move above the recent swing highs would be needed to shift conviction.

Volume & Momentum Analysis

• Volume tends to rise on notable downside days, consistent with distribution during the current pullback. This pattern reinforces the notion that selling pressure has been more decisive than any opportunistic buying rallies in the near term.
• On days when price attempted to rally, volume often did not sustain the move, suggesting a lack of broad participation from buyers and a tendency for rallies to fail without compelling volume support.
• The combination of a bearish MACD and an oversold RSI with subdued, non-dramatic volume on rallies paints a picture of a risk-off environment in the immediate term, with the potential for a short-term bounce only if buyers overwhelm sellers with higher-than-average volume.

Key Buy/Sell Levels

Current price: $210.11

• Buy Zone 1: around $205–$208

  • Has this zone been touched? No. The price is currently at $210, which sits just above this zone.
  • Distance from current price (to zone top/bottom):
    • Zone top (208): ~ $2.11 below current price (~1.0%)
    • Zone bottom (205): ~ $5.11 below current price (~2.4%)
  • Rationale: A shallow, near-term support cluster; a bounce from this zone would be technically meaningful if accompanied by higher volume and a break above nearby minor resistance.

• Buy Zone 2: around $198–$200

  • Has this zone been touched? Yes. The price previously dipped into this area in recent weeks, showing a potential local trough.
  • Distance from current price:
    • Zone top (200): ~ $10.11 below current price (~4.8%)
    • Zone bottom (198): ~ $12.11 below current price (~5.8%)
  • Rationale: This zone has shown historical relevance as a support area; a confirmed test with ensuing volume-backed reaction could offer a more robust risk/reward setup.

• Resistance/Interest zone: around $225–$230

  • Has this zone been touched? Frequently touched in prior months; acts as a meaningful near-term resistance hurdle.
  • Distance from current price:
    • Zone bottom (225): ~ $15.11 above current price (~7.2%)
    • Zone top (230): ~ $19.89 above current price (~9.5%)
  • Rationale: Clearing this zone on strong volume would be a notable bullish signal and could shift the bias toward neutral-to-bullish in the short to medium term. It aligns roughly with the MA50 vicinity and prior swing highs, making it a critical inflection area.

Trendline interpretation (for trading plan)

• The primary near-term trendline is horizontal around the current price vicinity, extending forward beyond the present time by at least 60–90 days to reflect near-term expectations.
• A horizontal support line near $205–$208 and a resistance line near $225–$230 capture the major inflection points observed in recent price action and align with moving averages and prior breakout zones.
• Volume confirmation is essential near these levels. A higher-volume test of support around $205–$208 that fails to hold would argue for a deeper probe into the $198–$200 zone, while a decisive rally through $225–$230 on elevated volume would strongly favor a trend reversal scenario.

How these levels relate to technical references

• Support at $205–$208 aligns with recent consolidation lows and minor intraday reaction points; if price holds here with improving breadth, it would bolster a potential basing setup.
• The $198–$200 area corresponds to a captured downside trough; a test here would indicate a stronger retest of the lower boundary of the recent range and could precede a more durable bounce if accompanied by significant volume.
• Resistance at $225–$230 sits near the MA50 vicinity and prior swing highs; a break above with sustained volume would shift the bias toward a more constructive interim stance, signaling potential completion of a base and the start of an upward retracement.

Technical Outlook & Summary

• Price action context: The current posture is bearish in the near term, with the price trading well below the MA50 and MA200, underscoring ongoing downside pressure. Oversold conditions from RSI suggest a potential counter-trend bounce, but lack of sustained momentum (as per MACD) keeps the downside bias intact until a clear breakout occurs.
• Volume context: Distribution pressure has been more evident on down days, with rallies lacking broad participation. A bullish reversal would require a pronounced increase in volume on a break above key resistance (around $225–$230).
• Technical signals:
  • Bearish indicators remain in play: price below major moving averages, negative MACD, and a low RSI.
  • Possible short-term bounce if price holds near $205–$208 and RSI begins to lift with improving volume.
  • A confirmed bullish shift would be evidenced by a daily close above $230 with strong volume, followed by a sustained move through $235–$240 to reestablish a more constructive frame.
• Summary: The setup currently favors a cautious, respect-for-support approach. Near-term risk is skewed to the downside toward the $198–$200 zone if support fails, while the upside requires a decisive break above $230 on elevated volume to reframe the trend.

Notes on charts

• The analysis above reflects the daily 3-month window and the longer weekly 2-year context. The daily picture shows a recent pullback with a potential basing process ahead, while the weekly context still requires a durable break above meaningful resistance to re-establish a more favorable medium-term bias. The price action and indicator readings should be revisited as new data arrives to confirm or adjust the levels above.