Amazon Stock Analysis Ahead of Earnings Report: Key Levels to Watch

Amazon’s stock is in focus as investors anticipate its upcoming earnings report, set to be released later in the evening UK time. Technical indicators and key price levels suggest potential volatility, with both bullish and bearish signals influencing market sentiment.

Amazon Stock Moves Sideways Ahead of Earnings

Examining the daily chart, Amazon’s share price has been trading sideways since January 28, reflecting market caution as investors adjust their portfolios ahead of earnings.

There is strong resistance at $241-$242, as seen in two previous attempts to break higher (on January 28 and February 4). However, both times, Amazon’s stock was pushed back down, evident from the wicks on the daily candlesticks.

Key Support and Resistance Levels

• Current price: $237.99
• Intraday support: $235.20
• Stronger support: $230
• Trendline & 50-day moving average support: $227 (critical level if stock dips post-earnings)

A break below $230 would put further downside pressure on the stock, with $227 acting as a crucial technical support level. Given its alignment with the 50-day moving average, this area will be closely monitored by traders if Amazon experiences a post-earnings decline.

MACD Indicator Signals Possible Bearish Divergence

One key technical factor to consider is the MACD (Moving Average Convergence Divergence) indicator, which measures recent price momentum.

• The MACD is currently bullish, indicating positive momentum.
• However, there is a bearish divergence, as the MACD is forming a lower high while Amazon’s stock price has made a higher high.
• This divergence suggests that some traders may take profits ahead of the earnings call, potentially weighing on the stock in the near term.

Wall Street Analysts Still Bullish on Amazon Stock

Despite short-term technical concerns, Amazon remains a strong long-term investment according to Wall Street analysts.

• TipRanks analyst ratings:
  • 39 analysts rate Amazon as "Strong Buy" or "Buy"
  • Only 1 analyst has a "Hold" rating
• Average 12-month price target: $261.78, suggesting upside potential from current levels.

Is a Post-Earnings Dip a Buying Opportunity?

Given Amazon’s strong fundamentals and bullish analyst ratings, any short-term dip following the earnings report could present a buying opportunity for long-term investors.

Key Takeaways:

✅ Amazon stock is consolidating ahead of earnings, with key resistance at $241-$242 and support around $230-$227.
✅ MACD divergence suggests short-term caution, possibly leading to profit-taking.
✅ Wall Street remains bullish, with a 12-month target of $261.78.
✅ A post-earnings dip could be a buying opportunity for investors with a long-term outlook.