Amazon Stock Needs To Capitulate Further Before This Selling Is Done
Amazon.com, Inc. (NASDAQ: AMZN) shares have been leading the market to the downside before and during the current broad market selloff.
Even an impending earnings release is not emboldening the Amazonians out there this time around.
Amazon has been a weight around the neck of the NASDAQ and S&P for months now, ever since the debacle surrounding the last earnings report. Technicians note that under the best case scenario, the stock still has room to fall. Even if the current decline is wave "c" of an "abc" short-term downside correction, the $295.60 level would have to be touched at a minimum. If using the extreme intraday levels when measuring out that same "abc" formation, the downside target would become $286.12, as shown on the chart with the green lines.
If this really is a crash-type scenario for the broader market, $286.12 will be violated on the downside on a closing basis and the next two targets would become $263.10 and $248.88 (both of which are Fibonacci projections).
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