Watch These Amazon Price Levels as Stock Drops on Sales Outlook [Video]

Amazon (AMZN) shares fell sharply in premarket trading Friday after the e-commerce giant reported weaker-than-expected quarterly revenue and issued light current-quarter guidance, as consumers opted to purchase cheaper products, lowering the average selling price in its core retail business.

Although the company’s stock reached a record high last month, investors have been quick to book profits in the weeks since amid growing concerns over increasing competition from discount e-tailers and a slowdown in consumer spending arising from lingering inflation and higher interest rates.

Shares were down 7.9% at $169.50 in recent premarket trading.

Below, we take a closer look at Amazon’s chart and use technical analysis to locate important price levels investors may be watching.

Amazon shares have trended mostly higher since the 50-day moving average (MA) crossed above the 200-day MA in May last year to generate a golden crossbuy signal. However, after climbing to a new record high last month, …