Since April 30, shares ofAmazon.com, Inc.(NASDAQ:AMZN) have been in a steep sell-off. The price has dropped from $3,520 to 3,220.
If shares continue to move lower, there’s a good chance they find support around $2,950. This level was support in September, early November and early March.
At support levels, there is more demand for the stock than there is supply. That’s why sell-offs end when they reach them. Sometimes stocks rally off of these levels. This happens when some of the buyers who help to create the support become impatient and decide to pay higher prices.
This is what happened with Amazon the last three times shares fell to $2,950. There’s a chance it happens again.
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