Amazon Share Price Analysis: Bearish Pressure Mounts Amid Geopolitical Tensions

Amazon's (NASDAQ: AMZN) stock is under pressure, now heading for its third consecutive day in the red as ongoing tensions between Iran and Israel weigh heavily on global investor sentiment. The Asian markets reacted negatively overnight, and this cautious tone has spilled into today’s pre-market trading session.

As of the latest data, Amazon shares are trading around $208.60 in the pre-market, with key resistance now identified at $218.95. However, with sentiment showing signs of deterioration, it’s crucial for traders and investors to consider potential downside support levels.

Potential Downside and Entry Points

There is a price gap between $194.67 and $202.33, which could act as a magnet for a pullback. If Amazon’s share price retraces into this range, it could present a potential buying opportunity or re-entry point for bullish investors.

However, a drop below the critical $190 support level could signal a deeper correction, possibly triggering further bearish momentum.

MACD Indicator Turning Bearish?

From a technical analysis perspective, the MACD (Moving Average Convergence Divergence) on the daily chart appears to be shifting towards a bearish crossover. If the current selling pressure persists, this momentum indicator may confirm a more extended downtrend.

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Key Takeaways for Traders:

• Resistance level: $218.95

• Pre-market trading level: ~$208.60

• Watch for gap fill: Between $194.67 and $202.33

• Critical support: $190

• MACD outlook: Bearish crossover likely if sell-off continues

Keep a close eye on broader market sentiment and geopolitical developments, as these factors are currently driving volatility and may continue to influence Amazon's stock price in the short term.