Amazon’s share price has started to retrace lower, after rallying to a new all-time record, around the $2,790 level, earlier this week.
Amazon stock technical analysis shows that a stronger pullback may be on the horizon, now that the upside target of a bullish price pattern has been achieved.
Amazon US medium-term price trend
Amazon’s share price has experienced a strong pullback from the $2,790 level, after US equity markets moved lower due to a spike in new coronavirus cases.
Amazon stock analysis on the daily time frame is showing that a pullback towards the $2,400 level may take place.
According to the daily time frame, a bullish inverted head-and-shoulders pattern has reached its full upside target this week.
A technical correction back towards the stock’s 50-day moving average, around the $2,400 level, may now occur.
Traders should also note that the RSI indicator is trading above 70, and is indicating that Amazon’s share price has reached overbought territory.
Amazon short-term price trend
Amazon stock technical analysis shows that the short-term trend remains bullish while the price trades above the $2,220 support level.
The four-hour time frame currently shows that bearish MACD price divergence has formed during the recent record advance in Amazon’s share price.
According to the size of the bearish MACD price divergence, Amazon’s share price could correct back towards the $2,600 level over the short term.
Further bearish MACD price divergence is also present from May 1, and extends down towards the $2,200 level.
Amazon US technical summary
Amazon stock technical analysis indicates that the online giant’s share price may have peaked. A technical correction back towards the $2,600 level may take place.