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Amazon (AMZN - Get Report) stock remains under pressure, with new Federal Trade Commission investigation worries hitting the stock on Monday. Shares closed down 4.64% to $1,692.69 on Monday.

Amazon isn't the only tech stock under pressure though. This morning we took a closer look at Alphabet (GOOGL - Get Report) at key support, given that shares closed down 6.12% on reports the Department of Justice will investigate the company. Facebook (FB - Get Report) is also under pressure, down 7.51%, with the FTC targeting it.

Rather suddenly, the talk of breaking up big tech has gotten quite serious. With Amazon, Facebook and Alphabet all in the potential scope of different government organizations, investors are feeling skittish.

It doesn't help that there remains a degree of uncertainty in the market thanks to the ongoing and escalating trade wars between the U.S. and other countries. It makes one wonder where the stock market and these three FANG components would be without the government's action.

Like Alphabet stock, Amazon has spent much of the past month in decline. Unlike Alphabet though, investors were receptive to Amazon's quarterly results. Down more than 12% from recent highs, where do we go from here?

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Trading Amazon Stock

One-year daily chart of Amazon stock.
One-year daily chart of Amazon stock.

I have been waiting for Amazon stock to test its 200-day moving average once it failed to hold its 20-day moving average a few weeks ago. This is highlighted on the chart with a purple arrow. However, I did not expect that "test" to fail instantly after the open and for shares to shed more than $80 before I finished my lunch on Monday.

This $1,750 to $1,760 level was very key to me. Not only did it house the 200-day moving average, but also the 38.2% retracement for the one-year range. It was also prior 2018 support turned fourth-quarter resistance, before again acting as support in March 2019. In a nutshell, I was really looking for this level to buoy Amazon stock. However, it's almost better that it failed so quickly, because it didn't suck in a wave of buyers, only for them to get crushed days (or hours) later.

Now what? The breakout level from March near $1,700 will now be called to action. So will the 50% retracement near $1,680. If these levels fail, $1,600-ish is the next line in the sand. That is the 61.8% retracement and served as range support in Q1 2019.

The bottom line: Watch the 50% retracement. If this $1,680 to $1,700 level holds, it should allow Amazon stock to bounce back to $1,750. From there, see if AMZN stock reclaims this level or if acts as resistance. If the $1,680 to $1,700 level fails, $1,600 could be next.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.