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
Risk/reward ratio: >1
Follow the evolution of the Amazon stock price with IG.