Peter Smith
Amazon shares are testing key technical levels after a sharp two-week selloff pushed the stock below $200. With momentum indicators weakening and volume surging during the decline, traders are now watching whether the e-commerce giant can find footing at the next major support area.
Amazon Faces Second Consecutive Week of Losses
Amazon's price action turned decidedly negative as the stock dropped to approximately $198.79, marking a roughly 5.48% decline in the most recent session. Market analysts noted that AMZN posted back-to-back weekly losses accompanied by unusually heavy trading volume, signaling broad-based selling pressure across the market.
The weekly chart reveals a dramatic break from the recent consolidation range between $230 and $240, with shares now approaching the next critical support zone spanning $186 to $192. This level aligns with previous reaction points where the stock has historically found buyers.
Technical Indicators Signal Weakening Momentum
Momentum has deteriorated sharply across multiple timeframes. The Relative Strength Index (RSI) has fallen to approximately 37.56, entering oversold territory, while the MACD indicator has turned negative—both reflecting weakening trend strength for AMZN stock forecast.
Trading volume expanded significantly during the selloff, confirming widespread participation in the downward move. While the multi-year uptrend remains intact on longer-term charts, immediate attention has shifted to whether Amazon can stabilize as it tests the $186-$192 range.
Key Support Level Could Determine Next Move
The $186-$192 zone has emerged as the decisive battleground for Amazon support level watchers. This area represents the next major floor after the breakdown from $230-$240, and how the stock reacts here will likely shape the near-term trajectory.
If AMZN holds this support after two weeks of heavy selling, it could mark a stabilization point and potential rebound opportunity. However, a decisive break below $186 would signal a deeper retracement phase and reinforce broader weakness across large-cap technology stocks.
Recent coverage in AMZN stock analysis has emphasized how closely price action has adhered to defined technical levels, making the current support test particularly significant for both short-term traders and longer-term investors positioning for Amazon's next move.
Peter Smith
