Amazon Share Price Outlook: A Drop Below 3200 Looks Feasible

The Amazon price continued on the downward trajectory on Wednesday after an SEC filing revealed that CEO of Amazon Web Services Adam Selipsky sold 1,356 shares, nearly 50% of his holdings, for a reported $4,451,748. More than 20 transactions have been conducted by insiders in the last three months, resulting in the net acquisition of nearly 2,600 shares. 

Amazon share price is down 0.59% as of writing. The Amazon share price has been steadily declining since 29 July, when the company missed on its revenue projections despite beating earnings estimates. It also provided weaker-than-expected forward guidance for the third quarter of 2021 as the easing of lockdowns has seen customers revert away from full shopping dependence on online platforms. 

Amazon Share Price Outlook

The price candles look set to complete the time filter for the breakdown of the 3253.66 support level. This opens the door towards 3173.69. However, the active daily candle needs to close below the 8 June and 16 August lows at 3211.13 to achieve this. Below this level, additional support is seen at 3084.19.

On the flip side, the price needs to return above the intersection of the ascending trendline and the 3347.32 resistance line for bullish momentum to pick up. This would require sequential breaks of 3253.66 and 3300.43. If the price action garners bullish momentum above the trendline, 3378.54, 3435.00 and 3494.46 are targets that need to give way for the Amazon share price to have open skies to retest its July 2021 highs.

Amazon Price: Daily Chart