NEW YORK (TheStreet) --Shares of Amazon.com (AMZN) are lower north of 5% over the past week after the e-commerce giant reported weaker-than-expected earnings last Thursday. In response, Ritholtz Wealth Management CEO Josh Brown explained the Amazon trade during CNBC's "Fast Money Halftime Report" today.
"I think the important level here for traders, people trying to get an edge on where they think the next stop is, is $800 that's the 50-day," Brown said. "The 50-day moving average on the way up was a very reliable area for support; that's where the buyers came in on every hiccup."
However, that previous level is starting to act as resistance, he noted.
"We saw the stock bounce back after the earnings slide, got right up to that level, and then was turned away," Brown explained.
He believes that is the level where the sellers have now "taken control."
"If you can get a close appreciably above $800 on good volume, maybe even on a weekly basis, maybe that's where you see the buyers become embolden," Brown added.
Until that level, however, he thinks this is a "tough" stock to be long in terms of a trader's perspective.
(Amazon.com is held in the Growth Seeker portfolio. See all of the holdings with a free trial).
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