Is Amazon Due for a Rebound? Here's What the Charts and Earnings Data Say

Amazon stock has taken an 8.8% hit over the past week, but the technical picture just flipped interesting. A hammer candlestick formed in the latest session—the kind of pattern that usually signals buyers are stepping in after sellers exhaust themselves.

For those unfamiliar: a hammer forms when a stock opens weak, drops to a new low, then finds buyers who push it back up near the opening price by close. The long lower wick (at least 2x the candle body) is the visual clue. In downtrends, this pattern often marks capitulation—bears lose control, bulls regain footing.

The Fundamental Backdrop Makes This More Credible

Here’s where it gets interesting: Wall Street analysts have been quietly bullish on AMZN’s earnings outlook. The consensus EPS estimate for the current year jumped 5% in just 30 days. That’s not noise—it signals analysts are collectively raising their profit expectations.

This matters because earnings estimate revisions are strongly correlated with near-term price movements. When smart money is upgrading numbers this consistently, it usually precedes stock rallies.

AMZN also carries a Zacks Rank #2 (Buy), placing it in the top 20% of 4,000+ tracked stocks. Historically, Rank #1 and #2 stocks outperform the broader market. The ranking system has proven reliable at timing trend reversals—it’s not just noise.

The Setup

Technical reversal pattern + improving fundamentals = a potential inflection point. Not a guarantee, but the risk-reward starts looking asymmetric. The question now: can buyers hold the line, or is this just a bounce in a bigger downtrend?

Usually worth watching.