Amazon’s stock has been in a steady uptrend after encountering strong support at the 88.00 region in mid-March. In addition, the price jumped above both its 50- and 200-day simple moving averages (SMAs), with the latest rebound faltering just shy of the 2023 high of 113.54.
Despite the recent weakness, the short-term oscillators remain tilted to the bullish side. Specifically, the MACD is strengthening above both zero and its red signal line, while the RSI is flatlining in the positive territory.
Should buying pressures intensify, the price could initially challenge the 2023 high of 113.54, which overlaps with the 50.0% Fibonacci retracement of the 146.11-80.97 downtrend. Piercing through that zone, the stock might ascend towards the 61.8% Fibo of 121.23. Even higher, the 78.6% Fibo of 132.17 could curb further advances.
On the flipside, if the price retraces lower, the congested region that includes the 38.2% Fibo of 105.85 and the 200-day SMA could act as the first line of defense. Should that barricade fail, the spotlight could turn towards the 101.60 support, which coincides with the 50-day SMA. Failing to halt there, the price may then test the 97.60 hurdle.
Overall, Amazon’s stock had been steadily gaining ground in the short term, but its rebound stalled slightly below its 2023 peak. Hence, it is clear that a fresh higher high is needed to revive bulls’ hopes for a sustained uptrend, while a potential failure to do so could lead to a moderate pullback.
Amazon’s stock has been in a steady uptrend after encountering strong support at the 88.00 region in mid-March. In addition, the price jumped above both its 50- and 200-day simple moving averages (SMAs), with the latest rebound faltering just shy of the 2023 high of 113.54.
Despite the recent weakness, the short-term oscillators remain tilted to the bullish side. Specifically, the MACD is strengthening above both zero and its red signal line, while the RSI is flatlining in the positive territory.
Should buying pressures intensify, the price could initially challenge the 2023 high of 113.54, which overlaps with the 50.0% Fibonacci retracement of the 146.11-80.97 downtrend. Piercing through that zone, the stock might ascend towards the 61.8% Fibo of 121.23. Even higher, the 78.6% Fibo of 132.17 could curb further advances.
On the flipside, if the price retraces lower, the congested region that includes the 38.2% Fibo of 105.85 and the 200-day SMA could act as the first line of defense. Should that barricade fail, the spotlight could turn towards the 101.60 support, which coincides with the 50-day SMA. Failing to halt there, the price may then test the 97.60 hurdle.
Overall, Amazon’s stock had been steadily gaining ground in the short term, but its rebound stalled slightly below its 2023 peak. Hence, it is clear that a fresh higher high is needed to revive bulls’ hopes for a sustained uptrend, while a potential failure to do so could lead to a moderate pullback.
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