Amazon: A Fallen Angel With Broken Wings (Technical Analysis)


  • AMZN continues to perform poorly compared to benchmarks in its relevant sectors which are leading the recent stock market rally.
  • The stock is likely heading into more weakness while investors could wait and see if support may build up.
  • In this technical article, I show important price levels and metrics that investors could consider for gaining an edge on the stock’s likely price action.
  • By considering multiple outcomes and setting up an adequate contingency plan, investors are less inclined to act driven by emotions, as this could come at a higher cost.
  • I continue to rank AMZN as a high-risk hold position, while I would still avoid any new or further exposure to the stock.

Flipping of wooden cube block between rise and risk for risk analysis assessment and management concept.

Dilok Klaisataporn/iStock via Getty Images, Inc. stock (NASDAQ:AMZN) continues to underperform its most important reference and despite multiple breakout attempts and a rally in the relevant sectors, the stock hasn’t been able to emerge from its downtrend. In this

Sectors 1Y vs 1M


Information Technology Services and Technology Sector 1Y vs 1M


Internet Retail 1M vs 1Y


XLY vs IXIC 08.02.2023

Author, using TradingView

AMZN Actual Situation Weekly 08.02.2023

Author, using TradingView

AMZN Likely Outcome 08.02.2023

Author, using TradingView

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: All of my articles are a matter of opinion and must be treated as such. All opinions and estimates reflect my best judgment on selected aspects of a potential investment in securities of the mentioned companies, as of the date of publication. Any opinions or estimates are subject to change without notice. I am not acting in an investment adviser capacity, and this article is not financial advice. I invite every investor to do their research and due diligence before making any investment decisions. I take no responsibility for your investment decisions but wish you great success.

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