Watch These Amazon Stock Price Levels After Company Issues Soft Outlook

Timothy Smith

Fri, May 2, 2025, 11:29 AM 3 min read

• Amazon shares wavered between losses and gains Friday after the e-commerce and cloud computing giant issued a cautious outlook amid uncertainty about the economy

• Since bottoming out last month, Amazon shares have consolidated within a rising wedge. More recently, the price has rallied toward the wedge’s top trendline and 50-day moving average, a move that has coincided with the relative strength index crossing back into bullish territory.

• Investors should monitor key support levels on Amazon's chart around $170 and $152, while also watching important resistance levels near $199 and $216.

Amazon (AMZN) wavered between gains and losses Friday after the e-commerce and cloud computing giant issued a cautious outlook amid uncertainty about the economy, offsetting strong quarterly results.

During the company’s earnings call, CEO Andy Jassy told analysts the company hasn’t seen any significant impact from tariffs denting consumer demand or sellers setting product pricing, but cautioned that may change. He also said that Amazon has remained proactive to keep prices low.

Amazon shares had lost 13% since the start of the year through Thursday's close and dropped 22% from their record high established in early February, weighed down by concerns that the company could get caught in the crosshairs of a protracted U.S.- China trade war. The stock was up about 1% at $192 in early-afternoon trading Friday, recovering from losses earlier in the session.

Below, we break down the technicals on Amazon’s chart and point out key post-earnings price levels worth monitoring.

Since bottoming out last month, Amazon shares have consolidated within a rising wedge. More recently, the price has rallied toward the wedge’s top trendline and 50-day moving average (MA), a move that has coincided with the relative strength index (RSI) crossing back into bullish territory.

Let’s identify several key support and resistance levels on Amazon’s chart that will likely gain investors’ attention.

A decisive breakdown below the rising wedge pattern's lower trendline could see the shares drop to around $170. This area on the chart would likely provide support near the late-April low and the trough of a minor pullback to the 200-day MA last August.

Selling below this level brings lower support at $152 into play. Bargain hunters could seek buying opportunities at a location near last year’s early August sell-off low. This region also roughly aligns with a projected bars pattern downside target that extracts the trend lower that preceded the rising wedge and repositions it from the pattern’s top trendline, speculating where the shares may be headed if a continuation move lower plays out.