Back to $183 in pre-market for Amazon after a dip to $166 last week

Taking a look at Amazon’s stock price ahead of its earnings tomorrow. Amazon is expected to report after the US market closes, with optimism back on the table after the smashing results last week from the likes of Alphabet and Microsoft. Currently, its stock is trading at around $182.26 a share. Looking at the chart from a technical aspect, we can see the stock underwent a retracement of 12% from the April high of $189.76 to the April low of $166.54. The level of $166.54 is now the main support level in focus, this is highlighted by the trendline on the chart and the fact the stock tested its 100-day moving average. The test of the 100MA then led to a rush of buyers with the price now creeping higher ahead of the earnings call. The share price in the pre-market session will likely remain around its current level, positioning itself just a little higher than halfway between the all-time high and April low. A break and close above $190 after the earnings would be a bullish indication. Furthermore, perhaps some small profit-taking would occur, which would be followed by consolidation and then another leg higher. A break below $166.54 may see a further sell-off towards $155. Looking at the technical indicators, the MACD is now starting to curve up but it is still negative so caution should remain. The RSI is close to turning positive as it reads 54 but it could falter at the US open.