Amazon stocks might be in for more gains, as price just recently broke through a key resistance zone. Price just closed a few days above the 200 simple moving average, which had been acting as a dynamic resistance level for Amazon stocks.
MACD is still heading higher, indicating that there’s buying momentum present and may be enough to sustain the rally for Amazon stocks. Further gains could take the price up to $350/share or around the previous highs at $365/share.
Amazon Stocks Outlook
Bear in mind though that the 50 SMA is still moving below the 200 SMA, which means that the longer-term downtrend hasn’t been broken. An upward SMA crossover could confirm that an uptrend is taking hold, although this signal might take a bit longer to materialize.
RSI is climbing but is almost in the overbought zone. This could lead sellers to take control of price action in Amazon stocks soon and possibly trigger a retest of the broken resistance area around the $325/share levels. A sharper selloff might lead to a drop until the 50 SMA, which is around $315/share at the moment. A break below this area could mean a test of the $300/share psychological support is in the cards.
There’s also an area of interest located at the $315-320/share area, which might hold as near-term support for Amazon stocks. A bounce from this region could keep the price in range or on track to rally further.
The stock price has drawn strong support ahead of the Thanksgiving holidays, as investors anticipated an influx of purchases during Black Friday. This could mean stronger revenue and profits for the e-commerce platform, which lifted Amazon stocks in the past few days.
Amazon announced that they would be unveiling new deals every ten minutes all week. This does not include “Deals of the Day” and “Lightening Deals” available on Thanksgiving Day and Black Friday.
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