After retesting the $125-$126 demand zone, Amazon stock (NASDAQ: AMZN) price is gaining strength once again. The stock experienced a 12% correction from its yearly peak after it failed to break above the $146 resistance level in September 2023. The ongoing price action reveals a major battle between the bulls and the bears to gain control.
Since the last week of September, Amazon shares have been trading sideways within the $125-$129 range. Despite strong selling pressure, the bears failed to gain acceptance below the $126 support level.
After a 0.66% gain last week, the stock of the e-commerce giant extended gains by another 0.23% on Monday. The price action will likely remain volatile for the rest of the week as the traders await the September 2023 CPI data for key insights on inflation.
In a major development, the Federal Trade Commission (FTC) recently filed an antitrust lawsuit against Amazon. The lawsuit alleges the tech giant is harming consumers by stifling competition. Attorneys General from 17 US states have joined the lawsuit, which is also impacting the Amazon stock price.
Amazon has responded to the FTC with an official statement.
..if successful, force Amazon to engage in practices that actually harm consumers and the many businesses that sell in our store..
David Zapolsky, Senior Vice President, Global Public Policy & General Counsel of Amazon
I accurately predicted a bounce in the NASDAQ: AMZN from the $126 level. Although the price dipped below this level, the bulls pushed it back above the key level. There is a strong chance that the price will fill the $132-$135 liquidity void in the coming days.
Amazon stock price will remain bullish for me as long as the bulls hold the $126 demand zone. A breakdown below this level will be a strong sell signal for me. Since last month’s breakdown from the uptrend, bears have a slight edge. This week’s CPI report will keep the price in check as the US equities try to recover.
This post was last modified on Oct 10, 2023, 11:39 BST 11:39