Amazon (AMZN) Stock Price Surpassed $230 for the First Time
On 12th November, while analysing Amazon (AMZN) stock chart, we:
drew two ascending channels (a long-term one marked in blue and a steeper one represented by black lines);
anticipated a test of the $200 level as part of a correction.
According to the AMZN chart, since then:
the price corrected with a test of the $200 level (indicated by an arrow), aided by the median line of the blue channel;
it continued to climb within the mentioned channels, reaching a new all-time high this week, the price hit $233.
Positive market sentiment is driven, among other factors, by:
Amazon's strong earnings report for the previous quarter;
expectations of a Federal Reserve rate cut, which helped the Nasdaq 100 index reach a new record, as we reported yesterday.
Can the price continue rising?
Technical analysis of Amazons stock chart today suggests this might be challenging because:
the price is near the resistance lines of both channels;
the RSI indicator is in the overbought zone, and you can spot a bearish divergence forming (a sign of weakening buyer momentum).
Given these arguments, the price could undergo a correction. If so, it might drop to the lower boundary of the short-term black channel.
According to TipRanks:
45 out of 46 surveyed Wall Street analysts recommend buying AMZN stock;
on average, they predict AMZNs price will reach $244 within 12 months.
Read more: https://fxopen.com/blog/en/oa-amazon-amzn-stock-price-surpassed-230-for-the-first-time/
Text source: Forex Trading Blog
