Amazon’s stock is currently trading up just over 2% at approximately $194.82 per share in pre-market trading. However, this price may fluctuate as traders and investors adjust their positions in anticipation of Amazon’s earnings report tomorrow. In this analysis, we’ll examine Amazon’s recent price movements, key support and resistance levels, and what to expect based on technical indicators.

Amazon’s Previous Earnings and Potential Impact on Share Price

During the last earnings season, Amazon’s stock dropped by nearly 9%, despite exceeding earnings expectations, due to the company lowering its outlook for the next quarter. This precedent suggests that even a strong earnings beat may not guarantee a price rally this time around, with sentiment depending heavily on forward guidance.

Key Support Levels to Watch

From a technical perspective, Amazon has several support zones that may cushion the stock in case of a decline. The primary support range lies between $180 and $183. A break below this level could trigger further selling pressure, with the next significant support level around $170. This area is crucial for investors who are cautious about potential downside risk.

Resistance Levels and Potential Upside

On the upside, Amazon has recently broken through the $191.47 resistance level, showing promising strength. Currently, $195 serves as a barrier that Amazon may need to overcome to maintain upward momentum through earnings. If Amazon can break above this level, it could re-test the $200-$201 resistance zone and potentially approach its all-time high (ATH) if positive earnings catalyze further buying.

MACD and Volume Indicators Signal Bullish Momentum

Recent technical indicators lend support to the bullish outlook. The MACD indicator has turned positive, which signals building upward momentum. Additionally, volume analysis shows increased buying activity over the past few weeks, suggesting growing investor confidence.

Wall Street Analysts Remain Bullish on Amazon

According to TipRanks, a site aggregating ratings from leading Wall Street analysts, Amazon currently holds 48 analyst ratings, with 46 rated as ‘buy’ or ‘strong buy’ and only 2 rated as ‘hold’. With an average analyst price target of $224, the outlook remains positive as Amazon heads into its earnings report tomorrow.