Amazon (AMZN), a titan of the tech and e-commerce world, is a perennial focus for investors. Its stock performance often serves as a bellwether for the broader market. A recent look at its daily stock chart on the popular platform TradingView reveals a compelling story of a powerful rally, a significant correction, and a tense recovery, placing the stock at a critical juncture for the second half of 2024.
Let’s break down the price action visible in the chart to understand what traders and investors are seeing.
The Strong Ascent: Late 2023 to Early 2024
The chart, which displays daily price movements from late 2023 into mid-2024, kicks off with a period of formidable strength. Beginning in November 2023, Amazon’s stock embarked on a steep uptrend. Each green candlestick in this period represents a day where the price closed higher than it opened, painting a picture of consistent buying pressure.
This bullish phase saw AMZN climb from levels around the $150 mark to an impressive peak near $248 in early 2024. This rally was punctuated by notable spikes in trading volume, especially around earnings announcements (marked by an ‘E’ on the chart), suggesting strong institutional interest fueling the move higher.
The Inevitable Pullback: A Test of Strength
Markets rarely move in a straight line. Following its remarkable peak, the chart shows a period of sustained selling pressure. A series of red candlesticks indicates that sellers took control, pushing the price down from its highs. This type of pullback, or correction, is a natural and often healthy part of a market cycle, allowing the stock to consolidate its gains and shake out short-term speculators.
The price eventually found a floor, bouncing off a significant support zone before starting its next chapter. For chart-watchers, identifying where a stock stops falling is just as important as knowing how high it can go.
The Current Scenario: A Recovery in Progress
The most recent action on the chart, from roughly April to June 2024, showcases a determined recovery. The stock has been grinding its way back up, forming a pattern that suggests buyers are stepping back in.
As of the moment captured in the screenshot, Amazon’s stock is trading at $211.97, down a slight 0.58% for the day. This places it squarely in the middle of its recent trading range—well above the correction lows but still below the year’s high. This is the “crossroads” investors now face.
Key Levels to Watch:
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Resistance: The most significant hurdle for Amazon’s stock is the prior peak around $248.00. A decisive move above this level would signal a continuation of the primary uptrend and could open the door to new all-time highs.
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Support: On the downside, the area where the correction ended (around the 190 range) now acts as a major support level. A break below this zone would be a bearish signal, suggesting the trend has changed. A more immediate, psychological support level exists at the $200 mark.
The narrow spread between the buy price (212.02) indicates high liquidity, which is typical for a heavily traded stock like Amazon.
Conclusion: What’s Next for AMZN?
The technical picture for Amazon stock is one of cautious optimism. The long-term trend remains positive, but the stock must overcome significant resistance to continue its climb. Traders will be closely monitoring the key support and resistance levels outlined above. A break in either direction could dictate the stock’s trajectory for the remainder of the year.
For now, Amazon stock is navigating a critical path, and its next major move will likely depend on broader market sentiment, upcoming earnings, and its ability to prove to investors that its growth story is far from over.
Disclaimer: This article is for informational purposes only and is based on a technical analysis of the provided image. It does not constitute financial advice. Please conduct your own research and consult with a qualified financial advisor before making any investment decisions.
