Amazon Q2 Earnings In Focus As Rally Pauses

EPS & Revenues Lift ExpectedAmazon steps into the spotlight today as the tech icon prepares to report Q2 earnings after the close. Following a more than 65% rally this year, Amazon shares have paused recently with the stock caught in range between YTD highs at 137.81 and support at 123.79. A shift lower in risk appetite recently has caused some hesitation, particularly in tech stocks. However, if Amazon can beat estimates today this should help the stock find a fresh wave of demand.Today’s ForecastsOn the numbers front, the market is looking for EPS of $0.354 on revenues of $131.494 billion which, if seen, will mark an uptick from the prior quarter. Notably, results in this region would also be a sharp improvement on the same quarter a year prior when Amazon recorded negative EPS on revenues of around $121 billion.Cloud & AI On WatchOf particular note today, will be the company’s results from its cloud computing business. Given the slowing trend we’ve seen across the tech sector, traders will be keen to see how cloud revenues held up last quarter. Additionally, traders will be looking for the latest update on the company’s use of AI as well as its ad revenues. With AI a major focus point right now, traders will be keen to get an insight into current usage and future plans.Technical ViewsAmazonFollowing the correction lower from YTD highs, Amazon has potentially carved out a lower high against that level. The key now will be monitoring the 123.79 support level and the bull channel lows. If price breaks below this region, we might see a deeper move down to the 112.63 level next. While above here, however, the focus remains on a further push higher and an eventual break above 137.81.