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$1,780 downside target : Amazon stock analysis

By Nathan Batchelor

Amazon stock price analysis shows that traders have few reasons to be bullish towards Amazon at the moment. Watch out for a strong reaction in the stock if price moves under the $1,670 level.

amazon stock analysis

Amazon stock analysis shows that the online giant’s share price is starting to come under pressure after multiple failed attempts above the $1,900 resistance level.

Amazon stock price analysis shows that a bearish head and shoulders pattern has been triggered into action, and could prompt a decline towards the $1,780 level.

Amazon medium-term price trend

US equity markets have been coming under increasing downside pressure this week as the coronavirus outbreak sparks fears amongst global investors.

Amazon stock price analysis shows that the online giant’s share price is approaching its key 200-day moving average, and could turn technically bearish for the first time this year.

The daily time frame shows that a large bearish reversal pattern could form if the stock declines towards the $1,670 level.

The overall downside projection of the pattern suggests that Amazon’s share price could decline towards the $1,350 level over the medium-term if the pattern is triggered into action.

Weakness under Amazon’s key 200-day moving average could be a sign that a major technical shift is about to happen in its share price.

Amazon short-term price trend

Amazon stock analysis shows that the recent breakout under the $1,860 support level has caused the short-term trend to turn bearish.

The short-term technicals surrounding the stock are fairly bearish at present ,and indicate that a potential near-term decline towards the $1,780 level could be on the horizon.

A small head and shoulders pattern with a $70.00 downside projection has been triggered across the lower time frames. With bearish pressure now increasing, it is likely that the pattern could play out to its full downside potential.

Traders should note that any moves above the $1,900 level would invalidate the bearish pattern, and could trigger a counter rally towards the $2,000 level.

Overall, traders have few reasons to be bullish towards Amazon in the short-term while price trades under the $1,860 level.

Amazon technical summary

Amazon price analysis highlights that downside pressure is growing, and its share price could soon fall towards the $1,780 level. A sustained break under the $1,670 level would be extremely bearish over the medium-term.

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