Amazon is expected to report earnings of $0.35 on revenue of $131.46bn.

Amazon currently trading at around $126.84 a share. Looking on the daily timeframe, we can see the price yesterday through the supportive trendline (white). There were reports of the Federal Trade Commission finalising an antitrust lawsuit against Amazon, forcing the price lower. Support below is now located at $125.91 (yellow) then at $123.85 (orange) and then at $120.64. A break and close below $120.64 may see the price slide even lower towards $113.80. However, the company is due to report quarterly earnings tomorrow and a positive report could cause some consolidation around the current support levels. This would allow investors and traders to position themselves for a potential move back up. At this moment in time, the short-term bias has turned bearish but the longer-term outlook is still bullish. Therefore, resistance levels now sit at $128.82 then at $130.13 and then at $131.84. A move and close above $131.84 could see a push towards this year’s high of $136.64. Glancing at the technical indicators, MACD has turned negative and the RSI is now neutral as it reads 46.