Amazon (AMZN)…

Yesterday after the closing bell, Amazon reported earnings that fell short of Wall Street expectations. According to CNBC “The internet retail giant reported a surprising second quarter loss of two cents per share, compared to forecasts of a five cent profit. Amazon also issued a cautious current quarter forecast, as it continues to invest in new areas like cloud computing services.” The stock price has dropped as much as 6% in after hours trading.

Taking a look at the technical picture, we have a weekly chart of the price action in this stock price going back to 2010. We had a strong rally into 2011 that took the share price up roughly $140 points to it’s swing high. The proceeding correction found support at it’s midpoint of the range and continued moving higher. As of yesterday’s close, the stock price had just finished a move higher that matched the previous short term bull market in length ($140 points). Shares of Amazon are set to open lower this morning.

Going forward I think the $280 level will be the next short term support area. The $265 area could come into play next, as support from the rising trend line below. The midpoint of this most current bull market comes in around $240 and that would be the area where I would draw my line in the sand. I would remain bullish/bearish below.

(EDIT: 12:31 PM EST: Amazon stock price has caught a significant bid since it’s opening gap lower. It now trades above last week’s high. I believe this means that Amazon is headed to it’s next upside target projected at $325-$330.)

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