Amazon Stock Analysis: Key Support Level in Focus Ahead of US Tariffs and Earnings Season

As global markets continue to navigate uncertainty, Amazon (NASDAQ: AMZN) finds itself at a critical technical and fundamental juncture. With new US tariffs set to take effect tomorrow, investor sentiment across the broader market has turned cautious—and Amazon's stock is no exception.

Amazon Share Price Overview

Amazon shares are currently trading around $193.09, following a recent rebound from a key support level near $184. On the weekly chart, AMZN touched a low of $184.64, narrowly holding above the crucial $184 zone, before bouncing back. This support area is significant, not only due to recent price action, but also because it marks a major resistance level from 2021—one that took nearly three years to break.

Technical Analysis: Support Holds… For Now

• Key Support Zone: $184
  This level will be critical over the coming weeks, particularly with earnings season just three weeks away. A confirmed breakdown below $184 could open the door to a retest of the $160–$170 range, which coincides with the price action seen during the Yen unwind trade in July–August 2024.

• MACD Turning Bearish
  The MACD indicator currently signals weakening momentum, with a bearish crossover suggesting potential further downside. The MACD is often seen as a leading momentum signal, and its current trend leans negative.

• RSI Near Oversold
  The Relative Strength Index (RSI) is now reading 39, the lowest level since March 2023. This may indicate short-term oversold conditions, potentially attracting dip buyers ahead of the upcoming earnings report.

Macro Factors and Investor Sentiment

The pending US tariffs, combined with broader global economic uncertainty, are weighing on risk appetite across tech stocks. Amazon, as a mega-cap tech name, is particularly sensitive to macroeconomic headwinds, supply chain concerns, and shifting consumer demand trends.

Conclusion: Critical Juncture for Amazon Stock

Amazon is now trading at a make-or-break support level that could determine its medium-term direction. While some near-term buying may occur given the RSI reading and proximity to earnings, technical indicators like the MACD suggest caution. If the $184 level fails to hold, the next major support sits in the $160–$170 range.

Until a clearer trend emerges, especially with the added pressure of upcoming US tariffs and earnings volatility, investors may want to remain cautious and watch for confirmation of support or a potential breakdown.