Technical Analysis:
Based on the latest market data, AMZN closed at $216.58 on Friday (Feb 21, 2025), showing a decline of 2.83% in regular trading. Let's analyze the key technical indicators:
- RSI (14) is at 34.63, indicating oversold conditions
- MACD shows bearish momentum with -1.23 and negative histogram of -2.26
- Stock is trading below its 5-day MA ($224.28) and 10-day MA ($227.58), suggesting short-term downward pressure
- Support levels: $214.33 (Lower Bollinger Band)
- Resistance levels: $232.40 (20-day MA)
News Sentiment Analysis:
- Amazon's Q4 2024 performance was strong with revenue of $187.79B and net profit of $20B, showing significant growth from previous year
- The company continues to demonstrate leadership in AI and cloud infrastructure
- Analysts maintain positive outlook - Bernstein has a Buy rating with $275 target price
Price Prediction for Next Week:
Based on technical indicators and news sentiment:
- Bullish Case ($225-230): If RSI bounces from oversold levels and broader market sentiment improves
- Base Case ($215-220): Consolidation near current levels as market digests recent earnings
- Bearish Case ($208-215): Further weakness if market volatility continues
Trading Recommendation: BUY
Rationale:
- Current oversold conditions present attractive entry point
- Strong fundamental backdrop with growing earnings and AI initiatives
- Multiple analyst upgrades with price targets significantly above current levels
- Support at $214 level provides favorable risk-reward
Target Entry: $216-218
Initial Target: $225
Stop Loss: $210
Technical Analysis:
Based on the latest market data, AMZN closed at $216.58 on Friday (Feb 21, 2025), showing a decline of 2.83% in regular trading. Let's analyze the key technical indicators:
- RSI (14) is at 34.63, indicating oversold conditions
- MACD shows bearish momentum with -1.23 and negative histogram of -2.26
- Stock is trading below its 5-day MA ($224.28) and 10-day MA ($227.58), suggesting short-term downward pressure
- Support levels: $214.33 (Lower Bollinger Band)
- Resistance levels: $232.40 (20-day MA)
News Sentiment Analysis:
- Amazon's Q4 2024 performance was strong with revenue of $187.79B and net profit of $20B, showing significant growth from previous year
- The company continues to demonstrate leadership in AI and cloud infrastructure
- Analysts maintain positive outlook - Bernstein has a Buy rating with $275 target price
Price Prediction for Next Week:
Based on technical indicators and news sentiment:
- Bullish Case ($225-230): If RSI bounces from oversold levels and broader market sentiment improves
- Base Case ($215-220): Consolidation near current levels as market digests recent earnings
- Bearish Case ($208-215): Further weakness if market volatility continues
Trading Recommendation: BUY
Rationale:
- Current oversold conditions present attractive entry point
- Strong fundamental backdrop with growing earnings and AI initiatives
- Multiple analyst upgrades with price targets significantly above current levels
- Support at $214 level provides favorable risk-reward
Target Entry: $216-218
Initial Target: $225
Stop Loss: $210