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Amazon stocks continues to amaze
Amazon continues to break to new highs, reaching almost $200.00, before pulling back a little. It was still up a good 2% at the time of writing, but it looks like more gains could be on the way after this week's bullish breakout.
On Wednesday, Amazon broke through the resistance in the $190 - $191 range, closing up 3.9% at a record high. This surge made it the fifth member of the "Magnificent 7" stocks to reach a market capitalization of $2 trillion. This breakout is a bullish signal that could sustain the tech rally even if leaders like Nvidia slow down.
The $190-$191 range has now become a crucial support zone to monitor for any short-term dips. To maintain the bullish sentiment, this area must hold.
The line in the sand is $185.33, Monday’s low. If this level is breached, it would invalidate the bullish breakout, indicating a false breakout and potentially leading to a significant sell-off.
But my base case scenario remains bullish and with the stock at record highs, it could easily rise above $200 in the days ahead.
By Fawad Razaqzada, market analyst at FOREX.com
On Wednesday, Amazon broke through the resistance in the $190 - $191 range, closing up 3.9% at a record high. This surge made it the fifth member of the "Magnificent 7" stocks to reach a market capitalization of $2 trillion. This breakout is a bullish signal that could sustain the tech rally even if leaders like Nvidia slow down.
The $190-$191 range has now become a crucial support zone to monitor for any short-term dips. To maintain the bullish sentiment, this area must hold.
The line in the sand is $185.33, Monday’s low. If this level is breached, it would invalidate the bullish breakout, indicating a false breakout and potentially leading to a significant sell-off.
But my base case scenario remains bullish and with the stock at record highs, it could easily rise above $200 in the days ahead.
By Fawad Razaqzada, market analyst at FOREX.com
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