Amazon slumps as tech selloff worsens
Amazon.com Inc (NASDAQ:AMZN)’s shares tumbled about 13% in premarket trading, with the online retailer coming close to losing its spot in the trillion-dollar company club, after forecasting holiday-quarter sales below Wall Street estimates.
The dour outlook worsened this week’s tech selloff amid fears of a looming recession, weighing on shares of Meta Platforms Inc, Alphabet (NASDAQ:GOOGL) Inc and Microsoft Corp (NASDAQ:MSFT).
Amazon’s shares, which were down 12.8% at $96.77, were trading at their lowest since March 2020.
However, Apple Inc (NASDAQ:AAPL) shone bright amid a crowd of dimming lights in the Big Tech space, as the iPhone maker said it expects holiday-quarter revenue to grow by under 8%, compared with estimates of 3%.
Many view the megacap companies as bellwethers for how corporate America is faring during a year in which inflation has soared, pushing the U.S. Federal Reserve to enact a series of jumbo-sized rate hikes that have bruised markets.
AMAZON.COM INC. Technical Analysis: Daily Chart
In the daily charts, AMAZON.COM INC. was trading in down channel. AMAZON.COM INC. is currently trading below all SMA.
RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 87.48 & the resistance level is at 105.70.
AMAZON.COM INC. was trading in down channel before there is breakout downside.
How to Trade AMAZON.COM INC. this Week:
AMAZON.COM INC. will follow the down channel until there is trend reversal. So, remain bearish on AMAZON.COM INC.