Here's Why Amazon (AMZN) Looks Ripe for Bottom Fishing

Core Viewpoint - Amazon (AMZN) has experienced an 8.8% decline in stock price over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottom in the stock price, suggesting that selling pressure may be exhausting [2][5]. - This pattern forms when there is a small candle body with a long lower wick, typically occurring during a downtrend, signaling that bears may be losing control [4][5]. - Hammer candles can appear on various timeframes and are utilized by both short-term and long-term investors [5]. Fundamental Analysis - Recent upward revisions in earnings estimates for Amazon are viewed as a bullish indicator, correlating strongly with near-term stock price movements [7]. - The consensus EPS estimate for the current year has increased by 5% over the last 30 days, indicating analysts' optimism about Amazon's earnings potential [8]. - Amazon holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].