Amazon (AMZN) - Get Report is scheduled to report earnings after the closing bell on Thursday. The stock is above a "golden cross" on its daily chart, suggesting upside, but it also has downside risk to a price gap to the April 28 high of $626.80. This gap was caused by a positive reaction to earnings after the closing bell that day, and the stock opened at $666 on April 29.

Technical analysis theories suggest that price gaps are almost always filled -- and will likely be filled here.

Amazon -- which is a FANG stock, along withFacebook (FB) - Get Report , Netflix (NFLX) - Get Report and Alphabet (GOOGL) - Get Report -- has the downside risk to fill this price gap on a negative reaction to earnings. (Facebook and Alphabet are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.) Amazon's weekly chart is positive but overbought, with characteristics of a parabolic bubble that could pop, given the stock's very high price-to-earnings ratio of 303.21.

Analysts expect Amazon to earn $1.14 a share. Investors will be focusing on the overseas expansion to over 100 cities in India and on growth in fulfillment centers such as one planned for Romeoville, Ill.

Here's the daily chart for Amazon.

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Courtesy of MetaStock Xenith

Amazon closed Tuesday at $735.59, up 8.8% year to date and just 2.9% below its all-time intraday high of $757.34, set on "Prime Day," July 12. The stock traded to its 2016 low of $474 on Feb. 9, and is now 55.2% above this low. The stock traded as high as $740.86 before the opening bell on Wednesday.

The stock had been above a "golden cross" since Feb. 20, 2015, when the stock closed at $383.66. A "golden cross" is confirmed when the 50-day simple moving average rises above its 200-day simple moving, which is a signal that higher prices lie ahead.

This "golden cross" stayed in play until March 31, when the 50-day SMA fell below the 200-day, with the close at $593.64.

A "golden cross" was reinstated on April 22, when the stock closed at $620.50. This positive signal remains in play today.

With the stock close to its all-time high, a positive reaction to earnings will likely lead to a new all-time high. A negative reaction to earnings will have the stock below its 50-day simple moving average of $722.12, with downside risk to the 200-day simple moving average of $638.18, and potentially filling the price gap to the April 28 high of $626.80.

Look at the price action going back one year. There was a huge price gap higher from the close of $482.18 on July 23, 2015, to the open of $578.99 on July 24, 2015. Then from the close of $563.91 on Oct. 22, there was a price gap to the open of $617.68 on Oct. 23.

These price gaps show how volatile this stock can be following a positive reactions to earnings. Note that the price gaps of July 24, 2015 and Oct. 23 were later filled.

Here's the weekly chart for Amazon.

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Courtesy of MetaStock Xenith

The weekly chart shows a red line through the price bars, marking the key weekly moving average (a five-week modified moving average). The green line is the 200-week simple moving average, the "reversion to the mean." The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicate overbought and readings below 20.00 indicate oversold. A negative weekly chart shows the stock below its key weekly moving average, with weekly momentum declining below 80.00 in a trend toward 20.00.

The weekly chart for Amazon is positive, with the stock above its key weekly moving average of $722.61, and well above the 200-week simple moving average of $403.16. Note how the stock has been above its 200-week since the week of Feb. 6, 2009, when the average was $555.92.

The weekly momentum reading is projected to slip to 88.27 this week, down from 90.99 on July 22, becoming less overbought vs. the threshold of 80.00.

Investors looking to buy Amazon should consider doing so on weakness to $708.92 and $683.58, which are key levels on technical charts until the end of September and the end of 2016, respectively.

Investors looking to reduce holdings should consider selling strength to $742.30, which is a key level on technical charts until the end of this week.

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