Amazon is expected to report earnings of $0.35 on revenue of $131.45bn.

Amazon currently trading at around $128.39 a share. Looking at the weekly timeframe, we can see that some profit-taking is happening, as well as a slight retracement from weeks in the green. There is support along the green trendline at $125.93, a break and close below this could indicate that a further retracement might take place. If that was the case, we would then look at support levels sitting at $123.66 followed by $120.64. On the other hand, a bounce of the trendline could see the price continue higher towards resistance sitting at $132.12 and then the high of the year - $136.64. A confident move above the high would create the opportunity for a rise higher towards the key level at $146.56. Looking at the technical indicators, MACD is still positive but looks like it’s starting to curve, and the RSI is faltering as it now reads 62. This is not necessarily an indication that a big bearish trend is forming, for example, the weekly MACD tends to be more sensitive than the monthly. As a result, it can be more deceiving and only indicate a short-term move. The monthly MACD is still positive. Additionally, it is not a total surprise that some downside is occurring as we could see that the stock has been overbought for the past 4 weeks, as suggested by the RSI.