News that Amazon (AMZN) is preparing to move into the meal-kit market is putting intense pressure on Blue Apron (APRN) as a new week begins. The stock is off just shy of 9% in the early going after beginning the session with a massive downside gap. This is certainly Blue Apron's weakest open since its IPO on June 29. With the stock now down 40% from its highs, it may be time to look for signs of downside exhaustion.
After only 12 days of trading, there is very little data to consider besides price. For patient investors, a key indication that shares have finally stabilized will be a series of consistent lows. It appeared that the stock had firmed up nicely above the $7.00 area last week after putting in four straight lows between $7.10 and $7.35. This morning's news inspired breakdown has wiped out that support zone.
Blue Apron will likely continue to work lower following this morning's extensive damage. Investors should look for stability before putting money to work. Eventually a low-risk entry opportunity will develop, but that may take some time. Currently Blue Apron is still under intense pressure.
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