Amazon.com, Inc. Price Analysis Powered by AI

Detailed Technical Analysis and Prediction

Trend Analysis

From an examination of the historical chart data, we observe a pronounced downtrend since December 2024, where the price has consistently declined from highs around $235 to the current price of $196.59. This downward trajectory appears to have persisted through a range of $235 to $192.5 over recent months, indicating sustained bearish momentum. Recent sessions, especially from late February to early March 2025, have witnessed increased volatility with a consistent decrease in the closing prices, suggesting a strong downward pressure on the price.

Moving Averages

The 50-day and 200-day moving averages (not explicitly provided) would likely show a downward crossover pattern typical in a bearish market, aligning with the observed consistent price drops. This bearish crossover often predicts continued downward movement, reinforcing the view of a persistent negative trend.

Volume Analysis

Analyzing volume trends shows a significant increase in trading volume during large price swings, particularly on days when prices fell sharply (e.g., February 24 with 42 million shares, February 25 with 58 million shares). Increased volume during down days confirms a strong selling interest, adding weight to the argument of a prevailing sell-off.

Relative Strength Index (RSI)

Typically, RSI below 30 is considered oversold, while above 70 is overbought. Given the current state of the chart and prolonged downtrend, RSI is likely to be nearer to oversold levels, indicating that while the stock could potentially see a short-term bounce, the overarching trend remains bearish until a definitive reversal signal is observed.

Support and Resistance Levels

Key support is around $192, witnessed in the recent lows. Resistance seems to be around $212, as seen from recent highs that the price struggled to maintain. Should the price break below the $192 support, further downside is expected.

Candlestick Patterns

Recent candlestick patterns show a mix of spinning tops and dojis, indicative of indecision in the market. However, bearish engulfing patterns have also been prevalent during this period, affirming the continuing negative sentiment and possible further decline.

Conclusion

Combining the insights above, we observe no compelling signs of reversal. The continuation of lower highs and lower lows along with corroborating indicators points to the likelihood of further downside. Thus, an optimal trading strategy in the current environment would be to “Sell”.

Given the current aggressive selling pressure and volume spikes during downtrends, initiating a short position would be prudent.

Market Sentiment

Considering global economic conditions and sectorial outlooks can also inform positions on Amazon. With a bearish U.S. market sentiment persisting, particularly in tech sectors, Amazon appears under pressure absent any significant catalysts.

Final Prediction

Price action is expected to remain under significant pressure, with the potential for further downside risk testing the key support levels.

Based on the analysis, the recommendation is to "Sell" at current levels with anticipation of further dips.