Amazon stock prices gapped down from the $360/share level to the $320/share area, leading to expectations of more weakness for the share price
27 August 2014, 03:11
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However, it appears that Amazon stock prices bottomed out around the $310/share level before rebounding up to the 50 simple moving average.
MACD is reflecting a pickup in buying momentum, as the indicator is climbing again. At the moment, Amazon stock prices are stalling below the $340/share mark, which is within the vicinity of the 50 SMA, which could act as resistance for now. An upside break from consolidation could lead to a test of the next area of interest at the 200 SMA.
RSI is also headed higher, with the oscillator climbing above the 50.0 level, indicating a return of buying pressure. Gains for Amazon stock could last until the $350/share level in the near term while a selloff could take prices down to the previous lows below $300/share.
For now, the 50 SMA is moving below the longer-term moving average, which means that the path of least resistance is to the downside. News that the company is acquiring Twitch, a live-stream gaming network, hasn’t been very impressive for investors as the deal is almost at $1 billion.
Analysts have rated Amazon stock as a negative or hold, as the prospects for the company haven’t improved recently. According to analysts at TheStreetRatings, the revenue growth came in higher than the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue does not appear to have trickled down to the company’s bottom line, displayed by a decline in earnings per share.
MACD is reflecting a pickup in buying momentum, as the indicator is climbing again. At the moment, Amazon stock prices are stalling below the $340/share mark, which is within the vicinity of the 50 SMA, which could act as resistance for now. An upside break from consolidation could lead to a test of the next area of interest at the 200 SMA.
RSI is also headed higher, with the oscillator climbing above the 50.0 level, indicating a return of buying pressure. Gains for Amazon stock could last until the $350/share level in the near term while a selloff could take prices down to the previous lows below $300/share.
For now, the 50 SMA is moving below the longer-term moving average, which means that the path of least resistance is to the downside. News that the company is acquiring Twitch, a live-stream gaming network, hasn’t been very impressive for investors as the deal is almost at $1 billion.
Analysts have rated Amazon stock as a negative or hold, as the prospects for the company haven’t improved recently. According to analysts at TheStreetRatings, the revenue growth came in higher than the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue does not appear to have trickled down to the company’s bottom line, displayed by a decline in earnings per share.
