Amazon’s amazing run is headed for trouble, technical strategist says

Shares of Amazon have been under pressure, and the charts are pointing to more downside, according to one technical strategist.

The stock posted its first negative week after five-straight weeks of gains, its longest winning streak since March.

Despite the impressive streak, Amazon is showing signs of short-term exhaustion around Black Friday, and a further near-term pullback is likely, said Katie Stockton, chief technical strategist at BTIG. Her analysis follows a bullish breakout in late October.

"We're really viewing the pullback as something that should be short lived, but should persist in the days ahead just based on the proximity of support on the chart, which is a bit lower based on the breakout point," Stockton said Friday on CNBC's "Trading Nation."

David Seaburg, head of sales and trading at Cowen, agrees that Amazon shares have indeed been "fatigued" lately, but said the broader picture is positive for the stock, which has advanced 55 percent this year.

"Last quarter they reported and they really show that their investment ... is actually producing some top-line results, so people are really comfortable with the investments they're making, and I think the long-term story is absolutely intact," he said.

Amazon shares fell a little over 1 percent on Friday. They were up 0.6 percent in Monday's premarket.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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