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Today's Featured Article Amazon Just Did This—and It Didn't End Well Last TimeWritten by Sam Quirke. Published 11/18/2025. 
Key Points - Amazon’s ongoing drop just triggered a rare RSI swing from extremely overbought levels to near-oversold levels in just two weeks - the last time this happened, the stock fell 35%.
- However, the company’s fundamentals, analyst support, and diversified growth engines are all as strong as ever.
- If there is to be a similar drop this time around, then it would be another golden buying opportunity.
For a stock that hit a fresh all-time high as recently as the start of November, it may come as a surprise that there's a bearish argument calling for a sell-off. Despite shares of Amazon.com Inc (NASDAQ: AMZN) popping into blue-sky territory after their late-October earnings, they've been selling off over the past fortnight. Gold has surged past $4,200 an ounce — up sharply over the past year — but Sean Brodrick of Weiss Ratings believes this move could still be in its early stages. After three decades tracking precious metals, he says past gold surges have often been overshadowed by a different type of opportunity that historically delivered far stronger returns than simply holding physical gold.
Sean now believes that pattern may be setting up again, and the strategy behind it doesn't require buying gold coins or bars. For a limited time this weekend, investors can access his full research — including the approach he says could benefit most if this gold cycle continues — for just $19 as part of a special offer. Click here to see how you could benefit before the offer expires After tagging an all-time high near $260, they opened Tuesday, Nov. 18's session around $230 — meaning the stock has given up more than 10% and almost all of its post-earnings gains. The eye-catching part isn't just the price action; it's what the RSI just did and what it might mean. A Rare RSI Crash To long-time MarketBeat readers who have seen us praise Amazon's execution and highlight its long-term growth potential, fear not: the upside story remains intact. But something notable has occurred on the chart that warrants short-term caution — the stock's Relative Strength Index (RSI), a popular indicator of overbought or oversold conditions, swung from above 70 to below 50. Put another way, the speed and one-directional nature of this month's sell-off pushed the RSI from extremely overbought to near the oversold threshold. That suggests bulls have largely stepped back and bears are in control — a surprising development for a company that beat analyst expectations just weeks ago. Under normal market conditions this might not be remarkable. But at a moment when tech valuations are under scrutiny — especially names exposed to the hot AI and cloud markets — it stands out. The last time Amazon's RSI swung from above 70 to below 50 was in December of last year — just before shares entered a 35% slide that didn't bottom until April. Why the Bears Don't Have Much Else Bears are likely to point to the RSI action as a preview of worse to come, but that's largely the extent of their case. Were Amazon to sell off that much, it would present an even better buy-the-dip opportunity than the one we flagged recently. The company has multiple revenue engines that management reports are firing on all cylinders, and analysts consistently rate the stock a Buy. Recent broker notes from the likes of Mizuho, President Capital and Loop Capital underline that sentiment — Loop Capital even set a new street-high price target of $360. From Tuesday's trading levels, that target implies upside of more than 50% — not bad for a roughly $2.5 trillion company. Returns like that on a company this size typically occur only when growth engines are intact or accelerating. Last month's report showed AWS growing about 20% year-over-year, advertising revenue rising, and margins healthy. Nothing in October's results suggested those trends are slowing — this dip appears, for now, to be driven largely by technicals and sentiment. NVIDIA's Earnings Could Set the Tone Investors should watch how Amazon and the broader market trade through the rest of the week. Persistent jitters around an AI-driven bubble and frothy valuations are amplifying moves, and NVIDIA's (NASDAQ: NVDA) earnings, due Wednesday, Nov. 19, could either calm or exacerbate those jitters. Either way, there's an opportunity for long-term Amazon believers. The bull run could remain intact and the stock return to all-time highs, or it could take a breather and sell off to levels many investors would have only dreamed of a few weeks ago. Until something fundamental changes in Amazon's go-to-market strategy or its ability to execute, it remains one of the best mega-cap tech stocks to own heading into 2026 — period.
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