Amazon Slips 1%, Tests Support at $221
$Amazon.com(AMZN)$ Dips -0.87%: E-commerce Giant Tests Support at $221, Holiday Season Momentum Building
Latest Close Data
AMZN closed at $232.38 on December 4th, down -0.87% (-$2.04), sitting 10.1% below its 52-week high of $258.60.
The stock traded in a tight range with 1.18% amplitude, suggesting consolidation near current levels.
Core Market Drivers
Amazon faces headwinds from broader tech sector rotation as investors reassess valuations ahead of year-end. Holiday shopping season remains a key catalyst, with AWS cloud growth and advertising revenue providing fundamental support. Recent capital outflows of $35.49M over 5 days reflect institutional profit-taking.
At the AWS re:Invent 2025 cloud conference in Las Vegas this week, Amazon (AMZN-US) showcased its ambitious plans for AI chips and generative AI.
Not only did it announce the commercial launch of its third-generation AI training chip, Trainium 3, but it also revealed that the fourth-generation Trainium 4 will utilize $NVIDIA(NVDA)$ 's NVLink Fusion interconnect technology, breaking away from its previous insistence on independent R&D.
Simultaneously, AWS released the new generation Nova 2 model series, encompassing four AI models with different focuses, significantly enhancing its multimodal application capabilities.
Technical Analysis
Volume of 35.5M shares with 0.95 ratio indicates below-average participation.
MACD shows improvement with DIF at 0.0004 crossing above zero, signaling potential momentum shift.
RSI(6) at 53.89 remains neutral, while RSI(12) at 51.21 suggests balanced sentiment.
KDJ indicators show K-line at 72.46, indicating overbought conditions may be moderating.
Key Price Levels
Primary Support: $221.05 (December 2nd low)
Strong Resistance: $234.45 (recent pivot high)
Immediate Pivot: $230.61 (today's low)
Valuation Perspective
Current P/E TTM of 32.84x trades near historical averages, with P/S ratio of 3.59x reflecting premium valuation for tech sector leadership.
Forward P/E compression suggests earnings growth expectations remain robust.
Analyst Targets
70 analysts maintain bullish outlook: 19 Strong Buy, 48 Buy, 4 Hold ratings.
Average target price of $290.22 implies 25% upside potential, with range from $227.10 to $360.00 showing wide conviction spread.
Weekly Outlook
Expect consolidation between $221-$235 range as MACD momentum builds.
Break above $235 resistance could target $245-$250 zone, while failure at $221 support risks decline toward $210-$215 area.
Risk Disclaimer
This analysis is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Please conduct your own research before making investment decisions.
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