Amazon's Key Levels to Know When It Reports Earnings

Amazon will report earnings on Thursday, alongside Apple, Alphabet and Facebook. Here are the levels to know for the stock now.
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Thursday is set to be a busy day of earnings. Among those reporting will be Amazon.com  (AMZN) - Get Report, scheduled to release its quarterly report after the close of trading.

The company will follow eBay  (EBAY) - Get Report, which reports on Wednesday evening, as well as Shopify  (SHOP) - Get Report, which reports before Thursday’s open.

Amazon will report alongside Alphabet  (GOOGL) - Get Report, Apple  (AAPL) - Get Report and Facebook  (FB) - Get Report.

So it’s going to be a busy 24 hours for e-commerce and a busy evening for the FAANG components. That’s got investors on their toes, trying to size up the tech space. On Thursday evening alone, those four companies will comprise more than $5.3 trillion worth of market capitalization.

Investors will expect Amazon to report strong earnings like it did in the previous quarter and tell a good story about the fourth quarter, which captures Prime Day, Black Friday, Cyber Monday and the holidays.

Amazon, Apple, Alphabet and Facebook are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMZN, AAPL GOOGL or FB? Learn more now.

Trading Amazon

Daily chart of Amazon stock.

Daily chart of Amazon stock.

Amazon is trading in a similar manner to Shopify ahead of earnings. The two have enjoyed monstrous rallies from the lows, but have been trading in a sideways manner since summer.

Like much of the tech space, Amazon stock peaked in early September. Its rally in October fell just short of retesting those highs, technically allowing a lower high to form.

While not bullish, the stock does have a bullish-looking technical pattern forming known as a cup-and-handle formation. That’s where a large U-shaped base has a modest pullback — the handle — and resumes its rise. This pattern is highlighted on the chart with purple lines.

On a bullish reaction, bulls will want to see shares reclaim the 50-day moving average and ideally, take out this week’s high with a move over $3,300. If Amazon does that, $3,500 resistance is back on the table.

A rotation over this level puts the all-time high in play at $3,552.25, followed by a possible move to the 361.8% extension near $3,649.

On the downside, traders should look for a close below last week’s low near $3,122 and the 100-day moving average. Below will put the $3,000 level in play, followed by range support near $2,900.

Below all of these levels puts the 200-day moving average on the table.