Amazon (NYSE: AMZN) Stock Analysis: Key Support Levels and Potential Breakdown

Amazon's stock price is currently testing a critical support level, aligning with its ascending technical trendline. Trading at approximately $222.86 per share, Amazon has pulled back from recent highs of $240. A break below this trendline could trigger further downside pressure, potentially pushing the stock down to $215-$216, where it would re-test January’s low (blue trendline).

Technical Indicators Suggest Possible Downside

• The 100-day moving average (100MA) is currently at $212, aligning closely with the support level. This makes it a key price area to watch.

• If Amazon fails to hold above $215, a deeper sell-off to around $200 could occur, bringing the 200-day moving average (200MA) into focus.

• Momentum is shifting bearish, with the MACD indicator turning strongly negative and continuing to decline. This suggests that downside pressure may persist in the near term.

Key Levels to Watch

• Immediate Support: $215-$216 (January’s low and 100MA alignment)

• Deeper Support: $200 (200MA influence)

• Resistance: $240 (recent highs)

Investor Outlook: Will Amazon Hold Support?

The bias currently leans bearish, with downside momentum increasing. However, a successful defense of support levels could present an attractive entry point for long-term investors. We will closely monitor whether Amazon maintains its current support zone or breaks lower for further declines.