Looking at the chart, we can see that in early June, the stock fell below its long-term uptrend from early 2015 and lost over 40% from its all-time high.
The Amazon share has fallen by about 7% in the weekly chart since last Monday.
In the process, the weekly low was $102.55, where the price withstood the support area at $103.
After the low, the price has recovered by 6.81% and is currently at $109.56.
On July 12th and 13th is Amazon Prime Day, where millions of customers are lured by special offers and generate billions in sales for the company,
however, worse profits are expected for 2022.
Investors should take note of inflation and pay attention to the development of Amazon’s cloud business, as the company is placing increasing emphasis on its development.
The US giant’s quarterly figures will be published on July 28th.
If the price respects the downtrend line, we can expect the price to drop to $103 initially.
In case of a break of the downtrend line, a rise of the stock to $120 at resistance is possible.