AMZN share prices are currently on a steep downtrend, after that reversal took place on the daily time frame. The 50 SMA has recently crossed below the 200 SMA, indicating that further losses are in the cards.
However, the RSI is indicating a potential bounce as it has been treading the oversold area for almost a couple of months already. AMZN share prices are also finding support at the $300.00 level.
AMZN Share Prices Outlook
AMZN share prices have been under selling pressure lately, as the company is pressured to withdraw its support for the Boy Scouts of America. Apparently, the boy scouts group has a discriminatory policy against hiring openly gay scoutmasters, something that goes against AmazonSmile’s terms of service.
Despite that, AMZN share prices have drawn support from news that the company is considering using drones to improve its delivery services. As Amazon declares in its drone patent-lawyer job notice: “Responsibilities include direct client counseling, third party IP investigations and actively working with outside counsel to manage filing, prosecuting and maintaining our growing US and foreign patent portfolio.”
If this plan pushes through, Amazon stock could see a strong rebound, possibly until the previous highs set at the $410.00 area. The longer-term charts such as the weekly time frame reveals that the longer-term uptrend is still intact and that there’s a chance share prices could rebound off its recent lows.
However, Amazon faces stiff competition against the soon-to-go-public Alibaba, which is an online selling company based in China. This has a much larger market share, which suggests that traders who are long AMZN stock might be looking to diversify some of their holdings and move their cash to Alibaba. After all, analysts have mentioned that to invest in Alibaba is to invest in China, which is currently the world’s second largest economy.
To contact the reporter of the story: Jonathan Millet at email@example.com