Technical Analysis

Is Amazon stock a buy or sell?

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Sell Amazon soon if it climbs to $217: Key levels and strategies for medium-term investors

Hello, Itai Levitan here at ForexLive.com 👋, examining why Amazon stock could be a sell around $217. Currently priced just under $209, Amazon might see some upward momentum, but $217 is where profit-takers might jump in. If you’re a medium-term investor or swing trader, here’s why this level could be your signal to exit. Sell Amazon stock at your own risk—this is just an opinion.

🔴 A confluence of resistance levels between $215 and $222

  • The $217 range is not random—it’s a convergence zone where multiple technical factors come into play.
  • Several algorithmic and manually drawn trend lines meet here, both on daily and weekly charts.
  • This convergence suggests resistance, potentially stalling Amazon’s climb without a major catalyst.

📏 Fibonacci levels supporting the resistance

  • Fibonacci fans will spot something here! 🔍 From the August 5th low to the July 3rd high, the 1.272 and 1.414 extensions align closely with this range.
  • The $217 level sits nearly in the middle, strengthening its significance as a potential profit-taking area.

📉 Channel analysis and the third touch point

  • Amazon’s broader price channel began with a steep post-earnings dip, dropping 20%, then bouncing up almost as much.
  • This movement forms two touch points in the channel, with a potential third at around $217.
  • A third touch here could signal a top within the channel, possibly leading to a downward move toward the channel’s lower band.

📉 Potential downside to $180: A strategic buy zone

  • If Amazon struggles at $217 and pulls back, watch for a possible test near the pre-earnings gap around $181.87.
  • Below that, around $180, sits a pool of liquidity and stop orders that could lead to a bounce.
  • For swing traders, this level might offer a smart buy opportunity, especially after a 17% correction from $217, with a chance to take partial profits for risk management. 📉

🔎 Other factors weighing on Amazon

  • Bezos selling: Jeff Bezos has been offloading Amazon stock in record amounts this year, which may add supply-side pressure.
  • “Trump effect” fading: Potential shifts in market dynamics as political uncertainties fade could add further market volatility.
  • Together, these factors point toward caution for Amazon’s price direction. 🤔

💡 Key takeaway for medium-term investors

  • For investors focused on medium-term gains, an exit around $217 could help mitigate risk.
  • If you’re in it for the long haul and don’t mind short-term fluctuations, hold steady.
  • For those who’d rather avoid a 20% drop, watch that resistance zone around $217 and consider selling to lock in profits.

Oh, and don’t forget about Jeff Bezos’s record sales this year—he’s cashed in over $13 billion of Amazon stock in 2024 alone, outpacing previous years. 📈 Whether for Blue Origin, philanthropy, or tax reasons, these sales add to the evidence that a careful approach to Amazon stock might be wise right now.

For more perspectives for investing and trading, visit ForexLive.com. And remember – buy and/or sell AMZN stock at your own risk only.

Amazon stock latest news

Last updated: November 11, 2024

Amazon Under the Microscope in India 🇮🇳

Amazon is feeling the heat in India as regulators amp up their scrutiny. India’s Competition Commission is probing Amazon’s business practices, especially its deep discounts for select sellers, questioning fair competition. With investigations also buzzing in the U.S. and Europe, these hurdles could impact Amazon’s valuation and shake investor confidence. 📉 Keep an eye on this—it could change the e-commerce landscape.

New Data Center in Pennsylvania Brings Hope 🏗️

Amazon’s building big in Pennsylvania, with a new data center on the way. This expansion promises jobs and a boost for the local economy. Investors, take note: Amazon’s strategic growth, even amidst challenges, shows potential for fresh opportunities. 📈 ForexLive traders might want to stay alert—this could have ripple effects worth exploring.

Is Amazon Still a Top Long-Term Buy? 💡

Amazon’s recent earnings were a bit underwhelming, and the stock took a hit. But here’s the good news: for long-haul investors, Amazon’s core strengths in e-commerce, cloud computing, and new ventures remain solid. This dip might be a golden ticket. Amazon’s resilience and growth chops make it a compelling buy for those thinking big picture. 📈

AMZN Stock Valuation: Just the Highlights 📈

  • PEG Ratio: At 2.48, Amazon’s PEG ratio might seem a bit pricey, but keep in mind it’s backed by strategic, long-term investments that drive future profitability. Think of it as paying a premium for innovation.

  • EPS Growth: With an impressive EPS growth estimate of 21.06% for next year and a 5-year forward rate of 18.00%, Amazon’s earning power is solid. This is a stock for those who want a growth powerhouse.

  • Forward P/E Ratio: Amazon’s forward P/E of 33.60 may look high, but it reflects strong expectations for earnings growth. Investors are betting on Amazon’s proven ability to keep expanding rapidly.

For those with a long-term view, Amazon’s valuation suggests it’s worth the price—an investment in continued growth.

AMZN Analyst Recommendations: The Essentials 📊

  • Positive Outlook: AMZN continues to earn strong ratings, with many analysts giving it ‘Buy’ or ‘Outperform’ recommendations. Telsey Advisory Group and Monness Crespi & Hardt recently raised their price targets, reflecting confidence in Amazon’s future growth.

  • Minor Downgrades but Strong Consensus: While Wells Fargo shifted its rating from ‘Overweight’ to ‘Equal Weight,’ the majority remain optimistic. New ‘Buy’ and ‘Outperform’ ratings from firms like Scotiabank and Pivotal Research Group reinforce this confidence.

  • Bullish Price Targets: Recent target hikes from analysts, including Loop Capital and Telsey Advisory Group, signal bullish sentiment. This trend of price target increases bodes well for long-term investors.

AMZN Insider Trading: Key Takeaways 🕵️‍♂️

  • Coordinated Sales: Recent insider sales, with key figures like Jassy and Herrington selling shares in alignment, hint at a shared view among Amazon’s top brass. For investors, this coordination could signal a need to reassess risk exposure, possibly hinting at future stock pressure.

  • Option Exercises Followed by Sales: Executives like CEO Andy Jassy and CFO Brian Olsavsky have frequently exercised options only to sell shares immediately. This pattern might imply a preference for liquidity over holding, a potentially bearish signal indicating cautious insider confidence.

  • Consistent Large-Scale Sales: The regular, high-volume sales by Executive Chair Jeff Bezos and Worldwide Stores CEO Doug Herrington suggest potential selling pressure. For investors, this repeated insider selling could be a cue to re-evaluate positions, as it may indicate executives see limited short-term upside.

For those tracking AMZN, these insider moves offer important insights—keeping caution in mind might be wise. 📉

For more sharp takes on investing and trading, swing by ForexLive.com. And remember—when it comes to buying or selling AMZN, take the plunge at your own risk! 😎📈📉

This article was written by Itai Levitan at www.forexlive.com. Source