Amazon Earnings Preview: Here's Your Technical Roadmap

Amazon will report earnings after the close of trading Thursday with a number of other big-tech stocks. Let's look at the charts for the stock now.
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After hitting a new all-time high earlier this month, Amazon.com  (AMZN) - Get Report stock has been digesting its recent gains.

With earnings due up after the close on Thursday, the stock could be on the move shortly. But at least it won’t go through it alone.

Amazon will report alongside Apple  (AAPL) - Get Report and Alphabet  (GOOGL) - Get Report, and because of a recent schedule change related to the congressional testimony for big tech, Facebook  (FB) - Get Report delayed its earnings by a day. Now, it also will report on Thursday evening.

With a powerful rally in Shopify  (SHOP) - Get Report on what really was a blowout report, investors will be looking for Amazon to have strong results too. That’s even as the two are in different parts of the e-commerce industry and as Amazon leans heavily on its Web Services unit.

Let’s look at the charts to get a look at some key levels once the company reports.

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Trading Amazon Stock

Daily chart of Amazon stock

Daily chart of Amazon stock

Amazon shares have embarked on a massive run, currently up 85% from the March lows. The rally has added almost $700 billion to its market cap from that low, an astounding figure when one considers the trillions of dollars collectively added to the market caps of the largest tech stocks.

The stock is now flirting with its 10-day and 20-day moving averages and is not really tipping its hand as to which direction it may move after it reports (not that there’s an ultra-accurate way to predict it anyway).

That’s why I like to map out the charts and try to have an advantage once the stock is already moving on earnings.

In this case, I am watching the $3,100 level. If Amazon can get above and stay above this mark, it will clear the 261.8% extension and downtrend resistance. That will put the July 21st high in play at $3,240, followed by the three-times range extension at $3,303.

Above that and new all-time highs are possible above $3,344. If Amazon clears this level, a longer-term target could be $3,648, the 361.8% extension.

On the downside, see how shares handle $2,900. That’s been support this month and if it fails, Amazon stock could trade down to the two-times range extension at $2,744 and the 50-day moving average near $2,760.

Keep in mind, Amazon has become a behemoth. A 10% move at current prices equates to a $300 swing.