As the chart shows, Amazon (AMZN) shares fell by roughly 3% yesterday after reports that the US Federal Trade Commission has launched a probe into the company over alleged “dark patterns”.

According to the allegations, Amazon may have deliberately complicated the process of cancelling Prime subscriptions in order to retain customers. Should the charges be proven, this could result in significant fines and have a major impact on one of Amazon’s key revenue streams.

Amazon’s share price dipped below $220 yesterday for the first time since 12 August. Could the decline continue?

Technical analysis of Amazon (AMZN) chart

In our 5 September analysis, we:
→ used AMZN stock price swings to plot an ascending channel (shown in blue);
→ suggested the price could extend its bullish structure after breaking through resistance R (shown in red).

Indeed, in the following days there was some bullish momentum: peak B was higher than peak A. However, this appears more a sign of weakness when judged by the nature of the reversal:
→ on 10 September, the price edged only slightly above the summer peak,
→ before tumbling sharply, with bearish candles widening.

This move, showing clear signs of a Double Top pattern (A–B), may suggest that buyers at September’s high were trapped, with stop-loss closures adding to the downward pressure.

The previously plotted ascending channel remains valid, but Amazon stock price has dropped (shown by the red arrow) into its lower half. In this context, the channel’s midline and the $227.70 level could now act as resistance.

Bulls, however, still have grounds to expect support from:
→ the bullish reversal zone formed in early August, when a narrowing triangle appeared on the chart with its axis around $215;
→ the QL line, which divides the lower half of the channel into quarters.

Although the negative sentiment from FTC-related news may eventually fade, what remains concerning is AMZN’s relatively weaker performance in 2025 compared with the broader market: while the S&P 500 set a fresh all-time high this week, Amazon shares have barely moved since the start of the year.

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