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Amazon's Bullish Run: Stock Poised for Further Gains

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Aayush Jindal

Key Highlights

  • Amazon’s stock price climbed higher above the $180.00 resistance.
  • It broke a major bearish trend line with resistance at $182.00 on the daily chart.
  • Amazon’s net sales increased 13% to $143.1 billion in Q1 2023, compared with $127.4 billion in Q1 2023.
  • Operating income increased to $15.3 billion in Q1 2024.

Amazon Stock Price Analysis

After forming a strong base above the $170.00 level, Amazon stock price (NASDAQ: AMZN) started a major increase. It broke many hurdles near $180.00 to enter a positive zone.

The company’s net sales increased 13% to $143.1 billion in Q1 2024 (YoY) and operating income increased to $15.3 billion (YoY). Besides, Net income increased to $10.4 billion in Q1 2024 (YoY).

Looking at the daily chart, the price gained bullish momentum above the $180.00 resistance zone. It broke a major bearish trend line with resistance at $182.00. Besides, there was a clear move above the 50% Fib retracement level of the downward move from the $191.65 swing high to the $173.57 low.

The price might continue to rise and revisit the $191.75 resistance if it clears the 76.4% Fib retracement level of the downward move from the $191.65 swing high to the $173.57 low.

A clear move above the $192.00 resistance zone could send the price toward the $200.00 barrier. If the bulls struggle near $192.00, Amazon’s stock price might start a downside correction. The first major support sits near the $180.00 level.

The next key support is at $176.50 below which there could be a steady decline toward the $170.00 level in the near term.

Economic Releases

  • US NFIB Business Optimism Index for May 2024 – Forecast 89.8, versus 89.7 previous.
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