Amazon is a multinational conglomerate that started with an e-commerce platform and expanded to cloud computing, digital content streaming, and artificial intelligence. Tapping on its expansive distribution network and advanced technologies, Amazon also has a presence in physical grocery stores.

Sector

(AMZN) is listed on Nasdaq and is a component of the S&P 500 under Consumer Discretionary

News

AMZN is expected to announce earnings results post-market on 27 Oct. 

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AMZN price was moving in a range between $140 to 188 from June 2020 onward. In this 12-month chart, the price hit $188 on 19 Nov 2021 (equivalent to $3696 before split). It then retraced to the bottom of the range $135 on 24 Jan 2022. The spike in volume suggests demand at this price point. However, the reaction to earning with high volume subsequently showed presence of supply, which could be the first sign of weakness.

This is further confirmed with the Wyckoff upthrust in early April, followed by a rapid sign of weakness. The reaction to bad earnings on 29 April is a confirmation of the Wyckoff distribution pattern. It is evident from the increased volume that supply was abundant and there was just ease of movement to the downside.

The price finally found support around $102. Thereafter, several attempts to rally were unsuccessful to commit above $135. After hitting $146 on 16 August, the price slowly drifted back to the lower range around $105. It should be noted the volume during this time is considerably lower than the volatile April to June period, and the momentum to the downside is also slower.

Bias

Range bound. Currently, there is no threatening supply to push the price lower. However, there are upcoming earnings results and AMZN typically reacted drastically. It is likely the price will retest $102 before attempts to rally again. Using the Wyckoff trading method, a bullish case is if the price can commit above $135 with a sign of strength rally and to overcome the supply/demand zone defined by the bar on 29 April.

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