AMAZON BEARISH ON REVIEWS SCAM, DATA PRIVACY CONCERNS
Amazon is currently trading at $1920–lower by 2.5% from the previous close. Amazon closed at 1968.18 on Friday.The stock has been continuously weakening since the previous three trading sessions.
Earlier, the stock was down by 0.77% before the market opens on Monday. The move came after Amazon disclosed on Monday that it was investigating suspected internal leaks of confidential information by its employees for bribes to remove fake reviews and other seller scams from its website. According to the Wall Street Journal, Amazon employees are offering internal data and other classified information through intermediaries, to independent merchants selling their products on the site to help them boost sales in return for payments. The news affects the company’s image in the markets adversely.
Further, Amazon would be affected if US President Donald Trump announces new tariffs on $200 billion of Chinese goods on Monday. Amazon would be hurt by tariffs on items sold through its website and components for its data centers. The tariffs will increase the import costs for components used in Amazon’s data centers or other items that would make its cloud computing division less competitive
Also, according to a congressional statement released on Wednesday, Sept. 12th Amazon along with other major companies will detail their consumer data privacy practices to a U.S. Senate panel on Sept. 26th.
On the technical front, the RSI is currently at 54.23% and suggests that the market can move in the downward direction. The %K has crossed the %D from above to the downside at 55.55% and suggests that the market may head downwards. The Current Price is below the MA5.
Overall Bias is Negative and trades can be initiated with tight Stop Loss and Profit targets to book profit for the short term.
TRADE SUGGESTION-LIMIT SELL AT 1928 TAKE PROFIT AT 1914 STOP LOSS AT 1935