Amazon stock volatile after $400 million Bezos sale
Investors are closely watching Amazon Web Services (AWS) for revenue growth
Amazon.com Inc. (NASDAQ: AMZN) is currently trading at $185.01, reflecting a 0.69% decline from the previous close. The stock has formed a rising wedge pattern, which is generally considered a bearish reversal indicator.
This formation is characterized by upward price movement with converging trendlines, indicating potential selling pressure if support is breached. The Relative Strength Index (RSI), a key momentum indicator, recently turned bullish, suggesting short-term upward momentum. However, the stock faces immediate resistance at $199, with a more substantial barrier at $216, aligning with previous peaks.
On the downside, support levels are identified at $170 and $152, with the latter corresponding to historical lows and a projected downside target. Another critical technical aspect is the 50-day and 200-day moving averages, which are converging. If the 50-day average crosses below the 200-day average, it could trigger a “death cross” pattern, further signaling bearish sentiment.
AMZN stock price dynamics (March 2025 - May 2025). Source: TradingView.
Additionally, the MACD (Moving Average Convergence Divergence) has recently shown signs of weakness, with the MACD line approaching a potential bearish crossover below the signal line. This indicates that bearish momentum could strengthen in the coming sessions. Traders should monitor these indicators closely, as a confirmed crossover may trigger further selling pressure.
Tariff concerns and executive stock sales
Recent developments have introduced caution among investors. Amazon’s first-quarter earnings report highlighted potential challenges related to tariffs, particularly concerning U.S.-China trade relations. CEO Andy Jassy acknowledged that while current impacts are minimal, future effects on consumer demand and pricing strategies are possible, especially if tariffs increase or global trade tensions rise.
Adding to the concerns, Jeff Bezos, Amazon’s founder and former CEO, recently disclosed the sale of a significant portion of his Amazon stock. The timing of this sale has drawn investor attention, especially in the context of broader market uncertainties. While insider sales can occur for various reasons, they are often viewed as a signal of caution regarding future price appreciation.
The technology sector, where Amazon is a major player, remains volatile amid concerns about Federal Reserve rate decisions, global trade tensions, and a potential economic slowdown. For Amazon, which operates in e-commerce, cloud computing, and digital services, these factors are critical to its financial performance. Investors are closely watching Amazon Web Services (AWS) for revenue growth, as this division remains a primary driver of profits.
AMZN potential scenarios
Given the technical indicators and market context, Amazon’s stock price is expected to experience increased volatility in the short term. If the stock can break above the immediate resistance at $199, it may attempt to test the $216 mark, especially if market sentiment turns positive or Amazon delivers favorable news.
Conversely, a breakdown below the $170 support level could lead to further declines toward the $152 mark. This scenario could be accelerated by negative macroeconomic news, heightened tariff concerns, or further insider selling. A "death cross" formation would further amplify bearish sentiment, making the downside scenario more likely.
Amazon reported strong earnings with solid revenue and cloud growth, but issued a cautious outlook due to potential impacts from slowing consumer spending and global economic headwinds. CEO Andy Jassy highlighted tariff risks but noted no significant impact so far.
