- Amazon’s (AMZN) stock price are up and closing in green continuously for the past 9 weeks.
- Amazon’s (AMZN) stock price shot up by almost 25% after the breakout of the inverted head and shoulder pattern.
Amazon (AMZN) Inc. is one of the tech giants on the NASDAQ exchange. It went public in 1997 at the price of $18. Since then, It has shown considerable growth on the charts and on the ground. It had two splits since 1997, a 3:2 stock split in 1998 and a 2:1 stock split in 1999.
Currently, it has a market cap of over $1 Trillion and receives an average volume of 281 Million on a daily basis. The stock enjoyed a bull run in 2021 and made a record-high price of $188 on 13th July 2021.
After that, Amazon’s stock price entered a declination phase and was corrected by almost 50% due to the Russia-Ukraine war and the fear of recession. After October 2022, buyers started taking interest as the price had already corrected by more than 50%. Buyers started dominating after the price entered the demand zone at $81 to 83.
An inverted head and shoulder pattern formed in the chart in the weekly timeframe. After the breakout of which the price made a continuous rally of almost 25% to the upside.
Amazon (AMZN) Stock Price Prediction: Will the Trend Continue?
Amazon’s (AMZN) stock price is currently trading at $130.38. It is moving in an uptrend by forming higher highs and higher lows. As observed on a daily chart size of candles is decreasing, and also volume is decreasing which indicates a loss of momentum. and the stock needs more buyers to gain momentum.
Amazon stock is trying to sustain itself at the upper levels. However, the price has soared by 25% without taking a pullback which indicates that a correction is pending in the stock. It is either a time-wise correction or a price-wise correction for the prices to move further.
If the price takes a pullback, then the 1st area of support for the price should be $122.5. If the price fails to sustain above, then the next area of support would be its previous support zone at $111 from where the price may again bounce back.
Source: Amazon.com, Inc. by TradingView
Amazon’s stock price is trading above 200, 100, 50, and 20 EMA on a daily timeframe which shows bullishness in the stock. Also, a golden crossover is observed in the daily chart which shows buyers’ strength in the stock.
However, the price is moving uUpwards but RSI has started declining after getting rejected from the overbought zone. Currently, RSI is at 64.25 and there is a divergence between the price and RSI which indicates some short-term correction possible in the AMZN stock.
MACD line is at 3.29 and the signal line is at 3.56. Both lines are declining which indicates a possible short-term correction.
Amazon’s (AMZN) stock price is trying to sustain near the upper levels after a bBullish rally of almost 25% after the breakout of the iInverted head and shoulder pattern. Currently, the price seems to be losing momentum and volume is also below the mean line which indicates a possible correction. Either price-wise correction or time-wise correction is pending in the stock so that new buyers may enter the market and move the price to a further high.
- Support levels at $122.56 and 111.37
- Resistance levels at $136.5 and 147.5
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