AMZN stock has been on a downtrend since the start of the year and has broken below the 50 SMA (simple moving average) a couple of months ago. Last April, the price also broke below the 200 SMA, indicating that the selloff is likely to last for the long run.
AMZN stock prices have made several pullbacks to the 50 SMA and the falling trend line connecting the latest highs on the daily time frame. Another pullback could offer an opportunity to sell the stock at a better price than current market levels. Take note that MACD is moving higher, indicating that buyers are in control of stock movement for now and that a pullback to the 50 SMA or trend line is possible.
The next area of resistance could be around the $322.00 mark, which is around the 50 SMA. Shorting with a stop above the 200 SMA and aiming for new lows or holding on for the next few months could give a good return on risk for this short AMZN stock trade.
AMZN Stock Price Forecast
There are plenty of factors that could keep the downtrend for AMZN stock going in the foreseeable future. For one, the company is still undergoing a battle with Hachette Book Group for being at odds over terms for e-book prices. The online selling company has reportedly slowed down sales for books published under this group in the past months and has eventually removed titles from its website.
“We are doing everything in our power to find a solution to this difficult situation, one that best serves our authors and their work, and that preserves our ability to survive and thrive as a strong and author-centric publishing company,” Hachette said in a statement Friday issued through spokeswoman Sophie Cottrell. Amazon has declined to comment.
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