Stock News – Amazon Technical Analysis – 20 October 2022
20 Oct 2022
Amazon files legal complaints in Italy, Spain against fake review brokers
U.S. e-commerce giant Amazon (NASDAQ:AMZN) said on Thursday it had filed legal complaints in Italy and Spain as it steps up efforts globally to shut down fake review brokers.
Amazon has long been battling with fake or manipulated reviews and the problem has only worsened as more people flocked to its site for shopping during the coronavirus lockdowns.
Tens of thousands of people have joined dedicated channels on the Telegram instant messaging site where anonymous intermediaries sign people up to write glowing five-star reviews for products on Amazon in return for financial reward.
“We continue to improve our proactive controls, invent new technologies and machine learning to detect bad actors, and find new ways to hold them accountable,” Dharmesh Mehta, Amazon’s Vice President of Selling Partner Services, said in a statement.
In its first criminal complaint in Europe, Amazon said it was targeting a “high-profile broker in Italy selling fake reviews”, but did not name the person.
The retailer said the defendant was claiming to have built a network of individuals willing to buy products on its site and post five-star reviews in exchange for a full refund.
Four- and five-star reviews can aid sales, especially if customers perceive them as unbiased.
Amazon also filed a civil complaint in Spain against Agencia Reviews, alleging the Spanish-based operator was fully reimbursing customers once they publish a fake 5-star review.
AMAZON.COM INC. Technical Analysis: Daily Chart
In the daily charts, AMAZON.COM INC. is 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 111.86 & the resistance level is at 117.46.
AMAZON.COM INC. will trade in down channel until there is trend reversal.
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.