Amazon (AMZN) – Get Free Report The stock wasn’t the worst performing FAANG stock in 2022, but it was far from the best.
Amazon’s seemingly strong and resilient business in the cloud with Amazon Web Services shows some cracks, but its retail business suffers from volatility in consumer spending, as well as rising inventory and transportation costs. tend to rise.
Just as other retailers have struggled this year, so has Amazon.
Amazon’s stock is better than Netflix’s (NFLX) – Get Free Report and meta (meta) – Get Free Report This year, a year-to-date loss of 50% does little to impress the bulls.
The question is, have stocks bottomed out or will 2023 bring more pain?
Trading Amazon Stock
Amazon stock weekly chart.
Chart provided by TrendSpider.com
Amazon stock fell for the fourth straight week and hit a 52-week low earlier this week.So did Apple (AAPL) – Get Free Reportas most FAANG stocks continue to struggle (excluding Netflix).
That said, Amazon stock is trading in a key area on the weekly chart.Not only is covid low at $81.30, but looking back at 2018, the area has seen significant support over the years. I know there was.
Already down about 55% from all-time highs, some investors may think the worst is over.
I’m not the gloomy type of person, but charts don’t lie. Currently, Amazon has seen previous support morph into current resistance, most notably at $100, but the active trend remains bearish.
These observations will change at some point, but not yet.
With that in mind, I’ll focus on the $80 area. will have an effect (this is the active resistance). Following that, a rally to the $100 area is likely.
However, if $80 fails as a support, the $72-$73 area could become a landing spot. This is his 61.8% retracement of the stock’s entire trading range and a 161.8% decline in the current range.
Finally, the $67.50 area stands out as a support to watch. This represents a 19% drop from current levels and equates to a 64.1% drop from all-time highs.
But for now, let’s see how the low $80s act as support.
