On April 7, we said that “Amazon is trading at less than 28x forward earnings — historically low compared to its 10-year average. Also, while the market has reacted negatively to short-term headwinds such as increased capital expenditures, margin pressure, and intensified competition, these concerns appear overblown.”

At the time, AMZN traded at about $210. Today, after testing a high of $256.18, it now trades at $248.28, where it’s struggling with November 2026 resistance. The stock has also become technically overbought on RSI, MACD, and Williams’ %R, telling us the stock may be setting up for a near-term pivot lower. In fact, if it fails to break above resistance, it could drop back to at least $235 a share, giving us a potential opportunity to profit from a put option on AMZN.

Sincerely,

Ian Cooper