AMZN weekly forecast: mild selloff contained — momentum and cloud division sustain medium-term uptrend

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Amazon slips 0.25% this week

Highlights

Amazon (AMZN) trades at $238.74, below the 20-day MA ($240.20) but above the 50-day ($233.26) and 200-day ($222.42), signaling medium- and long-term uptrends.
Key short-term support is at the Ichimoku Kijun ($236.84) and resistance is at the 50-day MA and recent highs, with increased selling pressure after a 1.74% price drop.
Despite short-term consolidation near session lows and overbought momentum readings, probability of an upward move is high (75%) with a $235–$247 range over the next five days.

AWS growth and AI investments shape sentiment ahead of earnings

Amazon is set to report its fourth-quarter 2025 earnings on February 5, with sales expectations between $206 billion and $213 billion. Growth in its AWS cloud division continues to support overall performance, delivering $33 billion in revenue in the previous quarter, up 20.2% year-over-year. Investors are also watching advertising, capital expenditure guidance, and the impact of recent AI-related investments.

Ongoing bullish momentum as weekly technicals reinforce support

On the weekly chart, AMZN's price action shows a retracement but continues to trade above the 50-week and 200-week moving averages, underlining the underlying bullish trend. Weekly dynamic support sits at the Ichimoku Kijun near $236.84, with resistance aligning to the 20-week MA and recent highs near $247. Weekly RSI signals a mildly bullish environment, while the alignment of major moving averages reinforces medium-term support and resilience against deeper pullbacks.

Sideways bias expected as range-bound momentum persists next week

Looking ahead, AMZN is likely to consolidate between support at $235 and resistance at $247 over the next week. Weekly momentum indicators, including RSI, MACD, and the 50-week average, point to a strong probability (75%) of an upward move should resistance be overtaken; however, a drop below $235 could trigger a bearish scenario. The most probable course is sideways movement within the band, with buyers maintaining medium-term control unless immediate support is lost.

Jainam Mehta, market strategist, sees Amazon holding its medium- and long-term bullish structure despite a mild retreat this week. He notes the price staying above key 50- and 200-week moving averages, with dynamic support near $236.84, as reinforcing resilience. Momentum and technical indicators favor consolidation, with a potential for an upside move if the $247 resistance breaks, but he remains mindful of downside scenarios if $235 support fails. "Base case is sideways between $235 and $247 this week — don’t chase until a directional break confirms the next leg."

Previously it was reported that Amazon is trading just below its short-term moving average but remains above key medium- and long-term supports, with technical indicators reflecting mixed momentum and a moderate bullish bias. Near-term seller pressure is evident, but the broader uptrend is intact, with critical support seen around $236 and resistance near $240, positioning the shares to potentially consolidate and attempt an advance if bullish signals strengthen.

Source of Data: AMZN Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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