Amazon Stock: Key Price Levels After Earnings Dip

Amazon shares fell after quarterly results failed to impress investors, despite growth in Amazon Web Services (AWS).

Key support levels to watch are around $199, $190, and $175.

A major overhead area to monitor for potential recovery efforts is near $233.

AWS growth of 17.5% lagged behind Microsoft’s Azure (39%) and Google Cloud Platform (32%).

Some analysts remain positive, suggesting buying the pullback despite the negative market reaction.

$199:: This level represents the first significant support, aligning with last July's peak and previous troughs in November and May.

$190:: A break below $199 could lead to a revisit of the $190 support, a horizontal line connecting price action back to April of the previous year.

$175:: A deeper retracement could see the stock testing the $175 level, an area of trading activity from February to April.

$233:: During recovery attempts, the $233 level represents a major overhead resistance, corresponding to the rising wedge pattern's peak and the December swing high.

Q: What caused the drop in Amazon's stock price?

Q: What are the key support levels to watch for Amazon stock?

Monitor key support levels to anticipate potential buying opportunities.

Be aware of the $233 resistance level during recovery efforts.

Consider the impact of AWS growth lagging behind competitors.

The initial market reaction was negative, but some analysts suggest buying the dip.