Amazon Shares at Key JunctureFollowing some initial downside action in response to Q4 earnings, Amazon shares have since been back in demand. Amazon reported a strong beat on earnings per share, which rose to $27.76, well above the $3.61 forecasts. Revenues, however, were slightly lower, which resulted in some short term selling, before price rebounded over recent weeks. However, with risk assets under pressure again over Russia-Ukraine uncertainty, tech stocks have come back under offer this week.Looking ahead now, the focus will be on how price resolves in this current area. If geo-political uncertainties subside and risk sentiment recovers, this should put the focus back on a continuation higher. However, if the situation deteriorates, particularly if conflict arises, then Amazon, along with other tech stocks, is likely to fall sharply lower near term.Technical ViewsAmazonFollowing an impressive 21% rebound off the recent lows, Amazon shares are now at a make-or-break point, retesting the broken bull channel and ledge of broken support, turned resistance, along the 3181.15 level. If this region holds as resistance, the market is potentially carving out a lower high against the November 2021 highs, suggesting a further leg lower in the medium term. Alternatively, if price can get back above the broken bull channel low, the focus will switch back to the topside and a continuation higher near term.
Source: Tickmill
