Big Block Trades: A Bearish Signal for Amazon

09/26/2017 12:44 pm EST

Focus: STOCKS

Leo Fasciocco

Investment Columnist and Publisher, Ticker Tape Digest

Amazon (AMZN) is our latest featured bearish play; the stock's fall on Monday undercut its key technical support and we see more on the downside, cautions Leo Fasciocco, technical specialist and editor of Ticker Tape Digest.


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AMZN'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.


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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.   

AMZN'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.

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