, Inc. (AMZN) broke down from key technical support levels on Monday after the company warned some of its customers that their email addresses were shared by an employee with a third-party seller. The data leak comes just weeks after the The Wall Street Journal reported that the company was investigating its employees for leaking customer data in exchange for bribes. In a separate article, The Wall Street Journal noted that Amazon relies on these third-party sellers to bolster its top and bottom line, which could make these developments a concern for investors.

The tech sector also remained under pressure during Monday's session, which contributed to the bearish sentiment surrounding Amazon., Inc. (CRM) stock was down more than 4% early in the session, while software and service companies were off by 2.2%. Investors may be giving more weight to value stocks over growth stocks following last week's strong jobs report. (See also: Amazon Bulls Double Down Despite Shaved Forecasts.)

Technical chart showing the performance of, Inc. (AMZN) stock

From a technical standpoint, Amazon stock broke down from key trendline and S1 support levels at $1,895.17 to lows that haven't been seen since late August. The relative strength index (RSI) is approaching oversold levels with a reading of 36.92, but the moving average convergence divergence (MACD) experienced a bearish crossover and remains in a downtrend dating back to early September. These indicators suggest that the stock could continue to trend lower over the coming sessions.

Traders should watch for a move lower to S2 support at $1,787.33, where the stock could consolidate. A breakdown from these levels could lead to a move down to the 200-day moving average at $1,629.84. If the stock rebounds back above trendline and S1 resistance, it could retest trendline and pivot point resistance at $1,972.83, although that scenario seems less likely given the bearish sentiment surrounding Amazon and the tech sector. (For more, see: US Govt Backs Apple, Amazon Denials of Spy Chip Report.)

Chart courtesy of The author holds no position in the stock(s) mentioned except through passively managed index funds.