Amazon.com Inc (NASDAQ:AMZN) shares are trading lower on Monday after a fire at one of its data centers in the United Arab Emirates forced authorities to cut power, knocking key AWS services offline across the Middle East.
Fire At AWS Facility Triggers Regional Cloud Disruptions
The outage stemmed from power and connectivity failures at Amazon's cloud‑computing hubs in the UAE and Bahrain, Reuters reported. The fire, which began Sunday, led officials to shut down two data‑center clusters, and Amazon warned that full restoration could take at least a day. Financial institutions relying on AWS were among those affected.
Although Amazon hasn't confirmed what hit the facility, the incident occurred the same day Iran launched drones and missiles at Gulf states in retaliation for U.S. and Israeli strikes.
AWS said repairs to cooling and power systems are underway, but recovery will take time and requires coordination with local authorities. A dozen core cloud services were disrupted, and customers were advised to back up critical data and temporarily shift workloads to unaffected regions.
AMZN Stock Stalls Below Key Levels
Amazon stock is currently positioned below key moving averages, indicating a bearish sentiment in the market. Specifically, Amazon’s stock is trading 1.9% below its 20-day SMA, 7.6% below its 50-day SMA and 8.2% below its 100-day SMA, which suggests a struggle to maintain upward momentum.
The RSI is currently at 42.80, which is considered neutral territory, indicating that the stock isn’t in overbought or oversold conditions, suggesting that there could be potential for either upward or downward movement. MACD is above its signal line, indicating bullish momentum despite the overall bearish positioning relative to moving averages.
Key support is at $196.00, while resistance is at $248.00. If Amazon’s stock approaches the support level, it may signal a potential reversal or continuation of the current downtrend, while a breach of resistance could indicate a bullish reversal.
Over the past 12 months, Amazon has seen a modest gain of 2.05%. This performance reflects a longer-term trend that traders should consider, especially in light of the recent price action and technical indicators.
AMZN Price Action: Amazon.com shares were down 0.88% at $208.16 at the time of publication on Monday, according to Benzinga Pro.
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