Amazon (AMZN) shares lost ground in extended trading on Thursday after the tech giant reported 澳洲幸运5官方开奖结果体彩网:cloud computing revenue below expectations and issued a 澳洲幸运5官方开奖结果体彩网:tepid outlook for the current quarter.

While the company’s 澳洲幸运5官方开奖结果体彩网:Amazon Web Service (AWS) cloud unit revenue grew 19% in the fourth quarter to $28.79 billion, it came in below the $28.87 billion expected. CEO Andy Jassy told investors on the 澳洲幸运5官方开奖结果体彩网:earnings call that the unit’s growth had been held back by the inconsistent flow of chips from its third-party partners.

Looking ahead, the company’s revenue forecast for the first quarter also fell short of Wall Street expectations, with executives saying the outlook reflects a significantly unfavorable impact from 澳洲幸运5官方开奖结果体彩网:foreign exchange rates. 

Amazon shares have gained roughly 9% since the start of the year as of Thursday’s close and trade more than 40% higher over the past 12 months, handily outpacing the 澳洲幸运5官方开奖结果体彩网:S&P 500’s r👍eturns of 3%ꦑ and 23%, respectively, over the same periods.

Below, we take a closer look at Amazon’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis ꦐto identify key post-earnings price levels that investors may be watching.

Rising Wedge in Focus

Amazon shares have trended higher in a 澳洲幸运5官方开奖结果体彩网:rising wedge since July last year, with the price finding support multiple times near the pattern’s lower trendline and 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA).

During recent trading sessions, the stock has traded towards the wedge’s upper trendline but was unable to stage a decisive breakout ahead of the company’s quarterly results.

Moreover, as the shares set a record high earlier this week, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) failed to also register a new high, creating a bearish 澳洲幸运5官方开奖结果体彩网:divergence ꦬbetween the price and indicator, a technical signal pointing to waning buying momentum. Indeed, Friday’s projected lower open sets the stage for a possible retest of the rising wedge pattern’s lower trendline.

Let’s identify three key 澳洲幸运5官方开奖结果体彩网:support levels to watch and also point out a measured move 澳洲幸运5官方开奖结果体彩网:price target to monitor if the stock resumes it lon♚ger-term uptrend.

Key Support Levels to Watch

Firstly, it’s worth keeping an eye on the $230 level. Although the stock is projected to open slightly belo🐻w th🌄is price on Friday, the area may attract buying support near the rising wedge pattern’s lower trendline.

The bulls’ inability to defend the above level could see the shares slip to around $216. This area on the chart may provide support near the November peak and January trough.

A more significant correction brings the 澳洲幸运5官方开奖结果体彩网:psychological $200 round number into play. Investors could seek to 澳洲幸运5官方开奖结果体彩网:accumulate shares in this region near the early July 澳洲幸运5官方开奖结果体彩网:swing high and late November 澳洲幸运5官方开奖结果体彩网:swing low, an area which also sits in close proximity to the upward sloping 澳洲幸运5官方开奖结果体彩网:200-day MA. 

Measured Move Price Target to Monitor

Investors can forecast a price target to monitor if the stock resumes its longer-term uptrend by applying the measured moved technique, also known by chart watchers as the 澳洲幸运5官方开奖结果体彩网:measuring principle.

When applying the method to Amazon’s chart, we calculate the depth of the rising wedge and add that amount to the pattern’s upper trendline. For example, we add $50 to $240, which projects a target at $290, a level where investors may consider 澳洲幸运5官方开奖结果体彩网:locking in profits.

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