Amazon advances this week as record capex and technical weakness keep price rangebound near $204

Traders Union
All News
Financial News
Amazon rises 2.99% this week

Highlights

Amazon (AMZN) trades at $204.73, below MA-20 ($224.18), MA-50 ($229.35), and MA-200 ($223.77), signaling broad bearish technical pressure.
Momentum indicators, including daily MACD, ADX, and CCI, collectively show weak trend strength and persistent selling, with RSI near oversold at 31.86.
AMZN is likely to remain rangebound between $195 and $210 over the next five days, with a less than 20% probability of a price increase.

Earnings miss and capital plan reshape sentiment alongside fund flows

Amazon reported fourth-quarter and full-year 2025 earnings with revenue of $213.4 billion and earnings per share of $1.95, narrowly missing consensus on EPS but surpassing revenue expectations. The company unveiled a record $200 billion capital expenditure plan for 2026 focused on AWS, AI infrastructure, data centers, and proprietary technology initiatives. Market participants also noted shifts in major institutional holdings, including a reduction by Berkshire Hathaway and increased stakes from other notable funds.

Bearish momentum prevails over the week as technicals stay weak

On the weekly technical picture, AMZN stays below its W1 MA-20, MA-50, and MA-200, confirming ongoing bearish momentum. The nearest resistance aligns with the Ichimoku Kijun at $222.47, while support sits closer to the $195–$201 range, with $210 acting as intermediate resistance. Weekly RSI stands near oversold at 31.86, and other indicators such as CCI and Bull/Bear Power continue to show dominant selling pressure, while ADX suggests weak trend strength.

Downside risk persists next week amid rangebound, bearish signals

For the next five to seven trading days, AMZN is likely to stay rangebound between $195 and $210 due to continued bearish readings from weekly MA and oscillators. A move above $210 could signal an early reversal, especially if buying momentum returns, but this scenario remains unlikely without a shift in trend strength. If the price breaks below $195, further downside risk emerges. The baseline scenario favors continued consolidation or moderate downside while bearish momentum persists.

Jainam Mehta, market strategist, believes Amazon’s weekly close below all major moving averages signals persistent bearish momentum on the higher timeframe. He notes that despite record revenue and a robust capital expenditure outlook, investors remain unconvinced as technicals show weak trend strength and an approaching oversold RSI. Mehta sees a continued range between $195 and $210 for the week ahead, with breakout risk on either side but no sign of a clear directional shift yet. "With prevailing bearish indicators and muted buying interest, I’m favoring consolidation or modest downside in the coming week — watching for any early reversal should price reclaim $210."

Previously it was reported that Amazon is stabilizing in the $204–$205 range after rebounding from recent lows, with price action oscillating between $200 and $210 as the 20- and 50-period EMAs flatten and the 100- and 200-period EMAs remain overhead as resistance. Technical indicators such as the RSI in the low 50s and expanding volume point to improving, but not overextended, momentum, while a sustained break above $210 could indicate further recovery and a move below $195 would signal renewed downside risk.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.