E-commerce giant Amazon (AMZN) reports earnings after today’s closing bell, the second of the Magnificent 7 stocks that report earnings this week. Amazon follows on the heels of one of its few peers in terms of market cap, which is Alphabet (GOOGL). Unfortunately for the bulls, GOOGL shares plunged about -7.3% from their all-time high close of 206.38 yesterday after the company reported its own quarterly results on Tuesday afternoon, even as the broader market made gains, so it could be a tense day as traders weigh their prospects for whether Amazon’s ~60% rally off the Aug. 5 lows continues.

Estimates for Amazon’s earnings-per-share and revenue come in at $1.52 and $187.28 billion for this quarter, which project 10.1% and 50.5% growth compared to same figures of $1.01 and $169.96 billion one year ago. Other key revenue breakdown estimates include $114.4 billion for North America Sales, $106.3 billion for Net Service Sales, and $80.3 billion for Net Product Sales. (All estimates from Zacks.)

Amazon’s chart has enjoyed a strong and consistent rally from the previously mentioned Aug. 5 low of 151.61, with price traveling in an upward channel shape and managing to close above the yearly +1 Standard Deviation Channel near 237. Price is holding on above the previous high close near 233, which is roughly where price made some recent lows and also lines up with the 21-day Exponential Moving Average near 232.50, so this is an area of potential support. Beyond that, the upward channel’s trendline aligns with a volume node near about 225. To the upside, the yearly +2 Standard Deviation Channel comes in near 256, so this could be a possible resistance area to consider.

The options market for the Feb. 7 expiration, which captures this earnings event, showed some interesting data at yesterday’s close. In general, the highest open interest on the call side is between about 220 to 270, whereas the puts show heaviest activity near 210 and 220, but open interest is below 9,000 for all the other strikes in this expiration series. The largest open interest on both sides is at the distant 160 strike, which is due to what appears to be a ~23,000 lot spread that took place on Jan. 3. The expected move based on the Probability of Expiring Cone study comes in around 186 to 194, so most of these high open interest areas are fairly far out of this range with only Friday’s session to digest the earnings results.

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