Amazon (AMZN) shares fell sharply in premarket trading Friday after the e-commerce giant reported weaker-than-expected quarterly revenue and issued 澳洲幸运5开奖号码历史查询:light current-quarter guidance, as consumers opted to purchase cheaper products, lowering the average selling price in its core retail business.

Although 澳洲幸运5开奖号码历史查询:the company's stock reached a record high last month, investors have been quick to book profits in the weeks since amid growing concerns over increasing competition from discount 澳洲幸运5开奖号码历史查询:e-tailers and a slowdown in 🌠consumer spending arising from linge𝐆ring inflation and higher interest rates.

Shares were down 7.9% a🐬t $169.50 in recent premarket trading.

Below, we take a closer look at Amazon’s chart and use 澳洲幸运5开奖号码历史查询:technical analysis to locate impo⛄rtant price levels investors may be watching.

Bearish Engulfing Pattern

Amazon shares have trended mostly higher since the 50-day 澳洲幸运5开奖号码历史查询:moving average (MA) crossed above the 200-day MA in May last year to generate a 澳洲幸运5开奖号码历史查询:golden cross buy signal. However, after climbing to a new record high last month, the stock promptly shifted into selling mode, raising the possibility of a potential 澳洲幸运5开奖号码历史查询:bull trap.

In another bearish development leading into the online retailer's quarterly results, the price rallied above the 50-day MA in Thursday’s trading session before staging an intraday reversal to close below yesterday’s low, completing a 澳洲幸运5开奖号码历史查询:bearish engulfing pattern in the process. This two-bar 澳洲幸运5开奖号码历史查询:candlestick formation warns of a shift i💟n market psychology, leading to lower prices.

Monitor These Key Support Levels

Following the stock’s earnings-driven selling, investors should monitor four key price levels that could provide support.

Initially, it’s worth watching if the stock can hold $170, an area on the chart likely to attract buying interest near a 澳洲幸运5开奖号码历史查询:confluence of support from the rising 200-day MA and an established uptrend line that joins several prominent 澳洲幸运5开奖号码历史查询:swing lows between December 2022 and October last year.

The next location to watch sits just $9 lower at $161, where the shares may find support around a late January peak that formed several days before the Feb. 2 earnings 澳洲幸运5开奖号码历史查询:breakaway gap.

An inability to hold this level could see a decline to $145, where buyers may seek 澳洲幸运5开奖号码历史查询:entry points near a trendline that links the major August 2022 and September 2023 price peaks with a period of narrow 澳洲幸运5开奖号码历史查询:consolidation in November and December last year.

Finally, a deeper 澳洲幸运5开奖号码历史查询:correction may see the shares test the $123 region, where they could encounter support from a horizontal line connecting numerous 澳洲幸运5开奖号码历史查询:peaks and troughs between July 2022 and October 2023.

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