Pessimistic Amazon stock price forecasts have hit the market as the Amazon share price opens sharply lower. The stock is trading at 4.4% below Friday’s close as investors react negatively to the rejection of the company’s appeal against the suspension of its deal with Future. An Indian tribunal on Monday threw out an appeal by Amazon against a suspension of its $200million planned investment in the Future Group.
India’s antitrust agency suspended the deal in December 2021 after it accused Amazon of downplaying the scope of the planned investment and making misleading statements about the deal. In dismissing Amazon’s appeal, the Indian tribunal said Amazon should be held
to account for failing to provide relevant information on the partnership. The tribunal also upheld a penalty of $26million imposed on Amazon by the antitrust agency. Amazon is yet to respond to the judgement as of writing.
The outcome of the appeal is the latest in a series of setbacks the company has had with antitrust regulators worldwide. Reuters is now reporting chatter from unnamed sources as saying that the company could offer some concessions to avoid heavy fines from European antitrust regulators.
The EU Commission had charged Amazon in 2020 with harnessing consumer data to provide an unfair advantage to its own products at the expense of merchants using the same platform. Amazon is facing fines of as high as 10% of its global turnover. The decline provides more fuel to negative Amazon stock price forecasts and could lead to the third day of heavy selling.
The completion of the double bottom pattern’s measured move was marked by a pinbar candle at the 125.70 resistance. This was followed by a correction that broke below the 115.78 and 109.33 price support levels. The price action is now targeting the 102.47 support where the troughs of the completed double bottom are found. A breakdown of this level targets 91.52 (20 March 2020 low), leaving 81.49 in the horizon as an additional downside target.
On the other hand, a bounce on the 102.47 support targets 109.33 once more. If this former neckline gives way, the bulls will mount a charge to retest the 125.70 resistance. A break beyond this barrier opens the door toward 137.32 (21 January and 27 April 2022 lows). Attainment of this level covers the gap of 29 April.
This post was last modified on Jun 13, 2022, 15:34 BST 15:34