Photo by Bryan Angelo on Unsplash

Amazon.com, Inc. (AMZN) shares are trading lower Monday among the broader technology sector while the Russia-Ukraine conflict continues to escalate with attempts of a ceasefire and Mariupol evacuation failing, and after Russian forces in Ukraine seized control of the Zaporizhzhia nuclear power plant.

The U.S. indices at large were also trading lower during Monday's trading session.

Amazon was down 5.31% at $2,758.83 at publication Monday afternoon.

Amazon Daily Chart Analysis

• The stock recently saw a break below the higher low support trendline in what traders call an ascending triangle pattern. The stock then went to retest this trendline and was unable to break back above it, holding it as an area of resistance. This hints that more bearish movements may come in the future.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been falling lower the past couple of weeks and now sits at 34 on the indicator. The RSI is nearing the oversold region and if it continues to fall lower, it may reach this area. If the RSI can stay in the oversold region the stock may continue to see strong selling pressure and move lower.

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What’s Next For Amazon?

Amazon is seeing a period of bearish movement and it will likely continue until the RSI can climb away from the oversold region and more buyers enter the stock once again. Bullish traders want the stock to bounce back and have the RSI climb back above the middle line. Bulls then want the stock to cross above the moving averages for sentiment to turn bullish again. Bearish traders are looking for the stock to continue to trade lower. Bears are in control of the stock as it sits now and would like to see the RSI continue to fall to stay in control.