Schwab Network on $AMZN (Oct 30, 2026)

So, let's take a look at your second option here. You have Amazon. It's clear we've heard the Amazon news. Amazon's cloud services ( AWS) growth was strong, but many concerns in this report led to a decline in the stock.

One of the worst performing stocks among the "Big Seven" since the beginning of the year. Tim, what's your take on Amazon?

As you know, again, it is clear that we have the data and the figures, and there are many concerns. I agree, but as you know, what I really do depends on the technical side, and I like this chart.

The stock really did fall back to those low levels of July and August. I witnessed that strong sell-off from May to the end of July ; The stock rebounded from around the 220 level, held at that level, then rose during July, then crashed hard, with a large downward gap, to reach 220 and then surged upwards.

I see a kind of repetition of the same pattern. What I like about this is that Amazon, I think I have three packages arriving today, and more over the weekend. Besides Amazon Web Services (AWS ), it's a great company.

I've had this huge setback. I think it's a bit of an overreaction to the company's earnings, and you can incorporate that into the chart. If the double or triple bottom at the 220 level does not hold, you have a very clear exit zone, because breaking this level means a return to the spring levels and you do not want to keep the stock there.

Therefore, I like to use support and resistance levels to buy as well as to stop loss. If the stock takes off as it did in August, you will have an excellent risk-to-reward ratio in this trade .

Good. So, KG, let's look at Amazon here. We have an April low at around 200. And an August low at around 284 . Which levels stand out to you as specific areas of support or resistance?

Tim's parcels are piling up as he prepares for next week's cleaning. I don't think this stock is experiencing a major downward collapse here. Actually, Marley, I'm not going to try to predict here, but I wouldn't be surprised if this stock turned from red to green in today's session .

If we look at the daily chart for this year, we can see that we have broken through the 200-day moving average. We have a very strong green candle. Since the opening, people have been buying this stock.

You can actually look at the buy-sell ratio, which is still a technical indicator at around 0.58. Therefore, purchase contracts are completely superior to sales contracts at this time.

We see that the $227 level is holding for the most part. We tested that in June of this year. We tested it again in late July. That was the support area. Now, we may see a retest of that 200-day moving average.

Now, that should act as a resistance zone. And then we might drop a little to a lower level. But again, the buying activity we've seen throughout today's session doesn't really indicate significant weakness in this stock.

If we break that level, we still have a technical downward gap between 220 and approximately 215. The Relative Strength Index (RSI) is still recording higher lows at the moment .

We'll see if that changes. The MACD indicator is in a bearish formation, with the 12-period exponential moving average below 26. But I am currently impressed with this candlestick.

If you are looking for a short-term trade, it is a very strong hammer candlestick at the bottoms. I mean, we are trading at almost the tops right now. Once again, we are about two dollars away from turning green.

If it turns green , I wouldn't be surprised to see some buyers stepping in aggressively. Let's move on to the weekly chart because the situation here becomes risky; The weekly chart is recording higher highs and lows, but we are witnessing a collapse.

We are testing the 50-week moving average. But the reason I'm bringing this up is that I think this time might not be too different from what we saw last time. I have selected them in these boxes here; From October of last year until April of this year, we experienced a substantial collapse, but we reached a key support zone and then rallied strongly, recording new relative highs.

This pattern that we see on the left is the same one we now have in that other square on the right here. Now, here's why I'm a little more pessimistic. The Relative Strength Index (RSI) is recording lower highs, and a bearish pattern is forming in the MACD indicator.

The 50-week moving average must hold. However, if you are looking for a short-term bounce and the hammer candlestick holds on the daily chart, I would n't be surprised if you see some follow-through and a retest of the 200-day moving average early next week.