With nearly $89 billion in revenue last year, Amazon.com is one of the largest and relentlessly innovative retailers in the world. Their growth trajectory has been nothing short of awe-inspiring over the years, and their mix of products and services continue to set the standard for the retail industry. This year, the stock has reflected all of the above, but recent market action indicates that there may be a bulls-eye on its name.
Amazon Stock Chart (Nasdaq: AMZN)
As I mentioned recently, the stock market as a whole is struggling to find some direction, and that uncertainty is impacting everyone. Sellers are taking their nervousness out on every stock, including the best and strongest names. Stocks like Amazon command a nice premium if their growth is rich and robust, but they are vulnerable to heavy selling if the market multiple comes in.
This is exactly what has been playing out the last couple of days, and I’ll be honest – this is some very disturbing activity. Amazon saw heavy turnover and a break below the 50 ma, and now the MACD is on a sell signal. At this point, we could see a test of the August lows in the coming days.
Amazon Chart Video Analysis
Take a deeper dive into the chart action (Nasdaq: AMZN) and learn how to read the technicals and my analysis as I mark up our chart of the week.
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