Technical Analysis – Amazon stock buyers in control, attempting to conquer the 1815 level

Anthony Charalambous, XM Investment Research Desk

Amazon stock is currently trying to overcome the cojoined 100- and 200-period simple moving averages (SMAs) residing around the 1815 level, which also happens to be the 38.2% Fibonacci retracement of the down leg from 2034 to 1680.

The stock has been gradually ascending from the low of 1680 and its recent up move is also backed by the technical indicators, which reflect improving sentiment. The MACD has risen above its red trigger line and into the positive region, while the RSI is strengthening in the bullish area. Moreover, the ADX suggests a strong positive trend is in place.

If the buyers manage to drive the price above the fortified 1815 resistance level, another key resistance region from 1857 to 1870, consisting of the 50.0% Fibo and the inside swing low of June 25 could halt gains towards the 61.8% Fibo of 1899. Climbing over this could push the price to test the 76.4% Fibo of 1950 and the neighboring resistance of 1964 from back in May.

Otherwise, should sellers retake the reins and dive lower, the 23.6% Fibo area of 1764 could prove hard to surpass as it is where the 20- and 50-day SMAs are located. Breaching this, the swing lows of 1720, 1700 and 1680 could interrupt the drop to test the trough of 1670 from June 3.

Overall, Amazon stock is neutral-to-bullish and a break above 1857 would be needed to confirm a bullish bias. However, a shift below 1670 could turn the medium-term bias bearish.