After yesterday’s weakness in the chart of the Amazon share, a dangerous situation for the share price is brewing. After the recent surge to the new top at $ 3,344.29, there has been a first consolidation move in the past few days that has stopped Amazon’s share price from $ 2,918.23. The subsequent rise, however, clearly did not reach the top, ended at $ 3,240.58 and was replaced by a new downward movement in the past few days. This has now caused Amazon’s share price to fall into the region of the first consolidation low. Yesterday, the stock closed on the US stock exchange NASDAQ with $ 2,986.55, a decrease of 3.66 percent. The daily low was quoted at $ 2,970.00.
In terms of chart technology, the focus is on an important new support zone. This extends above the first consolidation low and ranges from $ 2,918.23 to the region of $ 2,950 / $ 2,973 – up to the price level reached yesterday. A stable sell signal at this point would probably send the Amazon share into a larger consolidation movement. That would not be particularly surprising, however, after the title doubled within four months after the corona crash low of $ 1,626.03.
If the current profit-taking continues and the above-mentioned sell signals occur, the Amazon share would hit $ 2,768 / $ 2,796 for the first chart-technical support marks of a smaller type; below $ 2,722 another zone with various chart-technical support marks would then begin.