Amazon Stock AMZN Technical Analysis - BEARISH ALERT!

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Amazon is a multinational technology company based in Seattle, Washington, known primarily for its e-commerce platform. Founded by Jeff Bezos on July 5, 1994, Amazon started as an online bookstore but has since expanded into various other sectors. Here are the key aspects of Amazon:
1. E-commerce Platform
Amazon is best known for its online marketplace where consumers can purchase a wide range of products, from books and electronics to clothing and household goods. It operates on a model that includes both direct sales and a platform for third-party sellers.
2. Amazon Prime
Amazon Prime is a subscription service that offers members benefits such as free two-day shipping, access to streaming video and music, exclusive shopping deals, and more. It has been a significant driver of customer loyalty and revenue.
3. Amazon Web Services (AWS)
AWS is a leading cloud computing service providing infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). It offers a range of services including computing power, storage, and databases to businesses and governments worldwide.
4. Amazon Devices
Amazon develops and sells electronic devices, including the Kindle e-readers, Fire tablets, Fire TV, and Echo smart speakers. The Echo devices, powered by the Alexa voice assistant, have been particularly successful and pivotal in the smart home market.
5. Physical Stores
Amazon has expanded into physical retail with Amazon Books, Amazon 4-star stores, Amazon Go (a cashier-less convenience store), and the acquisition of Whole Foods Market, a chain of organic supermarkets.
6. Digital Content and Streaming
Amazon Prime Video is a major player in the streaming industry, offering a wide variety of movies, TV shows, and original content. Amazon Music competes in the music streaming market, and Amazon Publishing operates in the book publishing sector.
7. Logistics and Delivery
Amazon has developed a vast logistics network that includes warehouses, fulfillment centers, and its delivery service, Amazon Logistics. The company is also exploring drone delivery with its Amazon Prime Air initiative.
8. Amazon Marketplace
The Amazon Marketplace allows third-party sellers to list and sell products on Amazon's platform, significantly expanding the range of products available to customers. This marketplace model has contributed to Amazon's dominance in e-commerce.
9. Amazon Studios
Amazon Studios produces and distributes films and television series, including both original content and co-productions. It has produced several critically acclaimed shows and movies.
10. Research and Development
Amazon invests heavily in research and development, focusing on areas like artificial intelligence, machine learning, automation, and robotics. Amazon Lab126 is responsible for developing the company's hardware products.
Amazon's continuous innovation and diversification have made it one of the most valuable companies in the world, influencing various industries and transforming consumer habits.
Technical analysis is a method used to evaluate and predict the future price movements of securities, such as stocks, based on historical price and volume data. Unlike fundamental analysis, which focuses on a company's financial health and intrinsic value, technical analysis relies on charts, patterns, and technical indicators to make trading decisions.
Trends
Technical analysts identify trends, which are the general direction in which a security's price is moving. Trends can be upward (bullish), downward (bearish), or sideways (neutral).
Support and Resistance Levels
Support Level: A price level at which a security tends to find buying interest and as a result, it stops falling.
Resistance Level: A price level at which a security tends to find selling interest and as a result, it stops rising.
Technical Indicators
These are mathematical calculations based on the price, volume, or open interest of a security.
Relative Strength Index (RSI): Measures the magnitude of recent price changes to evaluate overbought or oversold conditions.