Amazon (NASDAQ: AMZN) stock price has rebounded strongly this year. Since the start of 2023, the stock has been up 22%. However, the latest analysis reveals that another pullback could be around the corner for Amazon share price. There are multiple fundamental and technical reasons which back this analysis.
On Wednesday, Amazon stock had the best day of the week as it closed with 1.96% gains. The shares of the world’s biggest online retailer also closed last week in green. S&P 500 index and NASDAQ 100 index both remained sideways during the third trading session of the week.
Jeff Bezos-led tech giant Amazon has been facing headwinds recently. The company intends to bid farewell to its 9000 employees this year. This is in addition to the 18000 layoffs that occurred in November and January. According to the most recent Amazon news, it has laid off some employees in the advertising unit.
As per the communication note sent to the affected employees, the layoffs will take effect from June 20 or July 17. Amazon stock price has been in a tailspin since its 2021 all-time high. It is still trading 44.5% below that peak and has underperformed many tech stocks.
The reason why I think NASDAQ: AMZN is likely to drop a lot from here lies on its daily and weekly charts. These charts reveal a very critical resistance level that Amazon share price is currently retesting. This is the $102-$104 region, which is a classic case of previous support now acting as resistance.
Based on this key level, along with confluences from the downward trendline and the 200-day moving average, my Amazon stock price forecast is not bullish yet. Only a reclaim of the $107 level can flip this outlook bullish, which seems highly unlikely under the current market conditions.
I’ll keep sharing my updated price outlook on Amazon & other stocks in my free Telegram group, which you’re welcome to join.
This post was last modified on Apr 20, 2023, 10:04 BST 10:04