Heres a Must-Hold Amazon Stock Support

Heres a Must-Hold Amazon Stock Support ...

FAANG''s stock has been a mixed quarter so far, but Amazon (AMZN) is not helping. The stock is down more than 12% in midday trading on Friday after the company reported earnings.

Get Apple Inc. Reportis down slightly after moving into positive territory shortly after the open, as it also reported earnings on Thursday evening.

Get Alphabet Inc. Class A Report (GOOG) - Get Alphabet Inc. Class C Reportdipped lower on its results and Netflix (NFLX) - Get Microsoft Corporation Reportand itsn''t even part of FAANG.

After a surprise loss in the quarter, Amazon''s stock is now hitting a two-year low. Even though the loss was caused by a write down on its equity investments (a $7.6 billion write down on its investment in Rivian (RIVN) - Get Rivian Automotive, Inc. Class A Report), a disappointing outlook lowered any increase the stock might have had.

If Amazon hadn''t impressed investors with its forecast for the next quarter, then they''d have avoided the negative earnings headline.

It''s disappointing to see the stock reach its lowest level since June 2020, but it also highlights the fact that its stock split now feels like too little too late, even if it gave the stock a nice boost when it was announced.

Amazon''s stock is now having a must-hold support.

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Amazon''s weekly stock chart. has created a chart.

The process of putting out the weekly chart has spawned in Amazon stock, since it has been around for over a year.

Recently, $2,700 had been holding as payment. And by the way, this is the 50% drop from the all-time high down to the Covid-19 low.

With today''s earnings falling, that support level is out the window, and on any future bounces, it will be assessed as potential resistance until it''s reclaimed.

I am seeing the $2,450 to $2,525 zone very close. It''s now where Amazon stock has its 200-week moving average, the 61.8% retracement, and the 50-month moving average.

If this area provides assistance, it''s possible that we get a return up towards the $2,630 area. Above all, the price of prior assistance is $2,700.

Below $2,400 might lead the way down to the $2,200 to $2,250 zone. Obviously bulls are looking to avoid this scenario, but before we get too far ahead of our skis, let''s look at how the current support area works right now.

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