Why Amazon shares look ‘vulnerable’

Amazon’s tumble during the last four weeks has some investors worried that more downside is ahead for the admittedly still-hot stock.

Since peaking at $1,083.31 on the morning ahead of an earnings report that proved to be disappointing, Amazon shares have tumbled 11.5 percent through Wednesday’s close of $958. Rich Ross, technical analyst at Evercore ISI, warns that “this stock is in a vulnerable technical position.”

Ross told CNBC’s “Power Lunch” on Wednesday that the stock has shown “classic signs of exhaustion,” and is now “sitting on key support at $950 in the short term — below which could test that 200-day [moving average] down around the big round number…

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