Amazon Stock Falls as Prime Day Kicks Off With Weak Sales
Amazon stock dips at the start of Prime Day as early sales estimates suggest a lacklustre performance
FUNDAMENTAL OVERVIEW:
Amazon.com, Inc. (NASDAQ: AMZN) shares slipped 1.8% on Tuesday as Prime Day 2025 got underway, weighed down by mixed analyst expectations and early signs of slower sales. E-commerce data showed a 14% decline in sales during the first four hours compared to the same period in Prime Day 2024.
The subdued start may be linked to this year’s expanded four-day format, twice as long as last year’s two-day sale. Still, retail sentiment on AMZN improved, shifting from ‘neutral’ to ‘bullish’.
From a technical and valuation standpoint, Amazon appears well-positioned for further gains, offering investors room for additional upside in the future.
However, growing concerns around ongoing tariff negotiations are dampening confidence in the company’s ability to maintain its current momentum—especially considering the market’s muted response to this year’s Prime Day.
AMAZON TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Amazon is trading within an up channel.
Amazon is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Negative trend.
Immediate Resistance level: 224.45
Immediate support level: 211.40
HOW TO TRADE AMAZON
After a significant decline, Amazon’s stock price found strong support on a higher timeframe, leading to an aggressive and sharp rally. It has since broken through a major resistance zone and is currently trading higher. The stock is now undergoing a pullback towards this newly established support. If Amazon respects this support level and remains above it, there appears to be further upside potential.