Amazon (AMZN) stock hit a 52-week low today at $2367.50 before bouncing back to a close at $2485.63. The share price is down nearly $1,300 from its all-time high at $3773.0782 in July 2021.
The weekly chart shows the head shape nearing completion on a long-term head-and-shoulders pattern. Today’s low dipped just below the 61.8% FIBO retracement on last year’s move to $3773. Additional support sits just below that level, at around $2,200, where the upchannel trendline comes into play.
Additionally, as the image above shows, RSI has reached key 30-level support on the weekly chart. Combined with the price chart data, this technical indicator suggests the low is either in, or on the horizon.
Discount buyers may find the current price level appealing compared to last year’s high. If the price does fall below $2,200, it may drop to support at around $1,500-$1,600. However, I would anticipate a more likely bounce to around $3,000 in the very near future as the long-term patterns sets up to build a right shoulder on the uptrend pattern.
The lofty share price may deter typical retail traders. However, a lot of brokers now offer fractional share purchases, which give you the ability to invest as much as you want on a dollar-trading basis.
Disclosure: I currently own a very small position in AMZN, but am considering adding at this level.