SAN FRANCISCO - OCTOBER 11: Amazon logo on black shiny wall in San Francisco mall in California on October 11, 2015. Amazon is an American international electronic commerce company. It is the world's largest online retailer.
Bearish Amazon stock price forecasts continue to weigh down the stock, as new headwinds to the recovery of the tech company’s stock emerge this Wednesday. Firstly, India has said it intends to strictly enforce new cybersecurity laws that will force social media companies and cloud server providers to file reports of any data breaches quickly.
Amazon will be affected by the new rule that the Indian Computer Emergency Response Team mandated. The rule has set a 6-hour time limit to report data breaches, maintain IT and communication logs for six months and retain customer names and IP addresses for up to five years. Industry watchers concerned about the rule say it will increase costs due to the higher compliance burdens on tech companies.
Domestically, a complaint lodged with the New York State Division of Human Rights has accused the company of discriminating against pregnant and disabled staff. The complaint alleges that affected staff are forced to take unpaid leave and denied suitable accommodation. Amazon has long been accused of providing poor working conditions and low pay for its US workers. These reports appear to weigh investor sentiment this Wednesday as the stock trades are 3.84% lower.
The 2053.61 support (12 May low) is expected to be the immediate target to the south if the intraday decline picks up sufficient momentum to take out the 2179.81 support (24 February 2020/9 May 2022 low). The two-year low may yet give way to a lower target at 1831.28 if bearish pressure degrades the 2179.81 support. The 3 October 2019 low at 1711.38 forms an additional southbound target if the decline extends further south.
On the other hand, any chance of recovery must follow a break of the 2293.98 resistance, along with a long advance towards the 2499.21 price mark (29 April and 3 May highs). Only when the price takes out the resistance at 2651.58 and attains the 2800.94 psychological price mark (9 March 2022 high) will the down gap of 29 April 2022 be covered.
This post was last modified on May 18, 2022, 18:38 BST 18:38