Amazon Under PressureAmidst the broader sell-off in risk assets, tech stocks have been among the hardest hit over the recent weeks. Looking at Amazon in particular, the company’s stock saw a deep 12% slide last week, marking its worst week since 2018. Pre-market pricing shows Amazon stock is due to open a further 4% down from Friday’s close at the open today.The driver behind the sell off has been a combination of increased Fed tightening expectations, hampering risk appetite, as well as geo-political uncertainties and mixed US earnings. With the FOMC due this week, further position covering is likely as traders brace for a hawkish update from the Fed.Looking beyond that, Amazon earnings are due on Feb 1st. Wall Street is looking for earnings-per-share of $3.72, which would mark a significant fall back from the prior quarter’s earnings.Technical ViewsAMZNThe sell-off from the breakdown through the bull channel has been sharp. Price quickly broke below key support at the 3181.15 level and are set to open beneath 2883.61, a major support level in Amazon. With both MACD and RSI bearish here, the focus is on further downside with 2483.08 the next support to note. To the topside, any retest of the 31818.15 level and broken bear channel will likely prove a decent area for selling if price makes it that far back up.
Source: Tickmill
