Amazon (AMZN) stock returns to test major support ahead of quarterly results

Amazon stock returns to major support at $2,700

On the technical side, Amazon stock returned to test its year low at $2700 on Wednesday, realizing the latest (short) trading idea on the stock.

The risk/return ratio is back in favor of buyers above this threshold, but it will be better to wait for a bullish signal to position yourself for purchase given the significant downward momentum of recent sessions.

It will be best to wait for a bounce above last year’s low at $2872 to attempt a rebound in action. Nevertheless, given the economic slowdown and monetary tightening, a major bullish reversal accompanied by new highs seems very unlikely.

The outlook would turn bearish in the event of a sharp decline below $2700. In this case, a return to the pre-covid high at $2100 would probably be expected.

Admission: Purchase above $2872

Stop: $2700

Goal: $3200

Risk/reward ratio: >1

Follow the evolution of the Amazon stock price with IG.

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