Heres Must-Hold Support for Amazon Stock

Heres Must-Hold Support for Amazon Stock ...

FAANG stocks have had a mixed quarter so far, but Amazon (AMZN) is partnering with Reportisnt. The stock is down more than 12% in midday trading on Friday after the company reported earnings.

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

Alphabet (GOOGL) - Get Alphabet Inc. Class C Reportdipped lower on its results and Netflix (NFLX) - Get Netflix, Inc. Reportplunged. Microsoft (MSFT) - Get Microsoft Corporation Reportand its not even part of FAANG.

After a surprising loss in the quarter, Amazon''s stock is now at a two-year low. Despite the loss being driven 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 slammed the stock''s momentum.

Amazon would have been surprised by the forecast for the next quarter, so they might have overlooked the negative earnings headline.

It''s not unusual to see the stock go at its lowest level since June 2020, but to emphasise that the stock split now feels like too little too late, even if it gave the stock a significant boost when it was announced.

Now Amazon''s stock is struggling with a must-hold support.

TheStreet Recommends

Margaritaville, directed by Jimmy Buffett, takes on the Royal Caribbean and Carnival.

What Are Treasury Inflation-Protected Securities?How Do They Work?

McDonald''s Has a New Menu Plan (More Big Macs?)

Trading Amazon Stock

Amazon''s stock is encased in a weekly chart. has provided a chart.

The problem with Amazon stock is largely range-bound for more than a year by zooming out the weekly chart.

Recently, $2,700 were holding as support. Interestingly, that''s the 50% retracement from the all-time high down to the Covid-19 low.

With today''s earnings falling, that support level 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 now. It''s now where Amazon stock finds its 200-week moving average, the 61.8% retracement, and the 50-month moving average in that order.

If this area serves as a base, it''s possible that we recover to the $2,630 area. Above all, it opens the way for previous assistance at $2,700.

Below $2,400 might open the door 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 see how the current support area he''s in place.

You may also like: