Technical Analysis– Amazon stock pauses advance at 200-day SMA ahead of earnings
April 25, 2023 2:27 pm
Amazon’s stock has been on a steady uptrend after encountering strong support in mid-March. However, the recent rally has temporarily stalled as the price has been battling with the 200-day simple moving average (SMA) in the last couple of daily sessions.
Even though the short-term oscillators reflect a slight loss of positive momentum, near-term risks remain tilted to the upside. Specifically, the RSI is flatlining above its 50-neutral mark, while the MACD histogram is softening but holding above both zero and its red signal line.
If the price manages to surpass the 200-day SMA, the 2023 peak of 113.53, which overlaps with the 50.0% Fibonacci retracement of the 146.11-80.97 downleg, could curb upside moves. Conquering this barricade, the bulls may aim for the 61.8% Fibo of 121.23. A break above that zone could shift the spotlight to the 78.6% Fibo of 132.17.
On the flipside, should the price fall below the 38.2% Fibo of 105.85, it could then test the recent support of 97.60, which lies close to the 50-day SMA. If that barrier fails, the 23.6% Fibo of 96.34 could provide downside protection. Failing to halt there, the stock might descend towards the March low of 88.00.
Overall, Amazon’s stock has been gaining ground ahead of its Q1 earnings report, but it is encountering strong resistance at the crucial 200-day SMA. Hence, the outcome of the upcoming earnings release could decide whether the rally will continue or fade.
Amazon’s stock has been on a steady uptrend after encountering strong support in mid-March. However, the recent rally has temporarily stalled as the price has been battling with the 200-day simple moving average (SMA) in the last couple of daily sessions.
Even though the short-term oscillators reflect a slight loss of positive momentum, near-term risks remain tilted to the upside. Specifically, the RSI is flatlining above its 50-neutral mark, while the MACD histogram is softening but holding above both zero and its red signal line.
If the price manages to surpass the 200-day SMA, the 2023 peak of 113.53, which overlaps with the 50.0% Fibonacci retracement of the 146.11-80.97 downleg, could curb upside moves. Conquering this barricade, the bulls may aim for the 61.8% Fibo of 121.23. A break above that zone could shift the spotlight to the 78.6% Fibo of 132.17.
On the flipside, should the price fall below the 38.2% Fibo of 105.85, it could then test the recent support of 97.60, which lies close to the 50-day SMA. If that barrier fails, the 23.6% Fibo of 96.34 could provide downside protection. Failing to halt there, the stock might descend towards the March low of 88.00.
Overall, Amazon’s stock has been gaining ground ahead of its Q1 earnings report, but it is encountering strong resistance at the crucial 200-day SMA. Hence, the outcome of the upcoming earnings release could decide whether the rally will continue or fade.
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