Big BlockTrades: A Bearish Signal for Amazon
Amazon (AMZN) is our latest featured bearish play; the stock's fall on Monday (Sept. 25) undercut its key technical support and we see more on the downside, cautions Leo Fasciocco, technical specialist and editor of Ticker Tape Digest.
Amazon’s tape action shows the recent block trades. One can see the price for the blocks falling from $955.10 in the prior session to as low as $933.60.
A key bearish trade came when a block of 82,299 shares crossed the tape at $949.31. That was down from the prior block trade at $955.10 on 6,745 shares in the prior session. Near the close, a block of 225,927 shares crossed the tape at $939.79.
This year, analysts are forecasting a 30% decline in AMZN's earnings to $3.43 a share from $4.90 a year ago. Net for the upcoming third quarter is expected to be down sharply to one cent a share from the 52 cents the year before.
Amazon’s daily chart shows the stock cutting below key technical support on expanding volume. It 12-month performance chart shows the stock up 18% versus a 17% gain for the stock market. However, in recent months the performance has tailed off.
We are targeting AMZN for a decline to $830 within the next few months, or sooner. A protective stop buy can be placed near $965.