Amazon Stock Runs Up Towards Resistance: Technical Levels To Watch

black Samsung Galaxy smartphone displaying Amazon logo

Amazon Inc. (AMZN) shares traded higher on Friday. The stock was trending on social media websites, as news spread over the failed union vote at the company's Alabama warehouse. 

Amazon ended Friday's trading at $3,372.20, up 2.21%.

amzndaily4-9-21.png

Amazon Daily Chart Analysis

The daily chart above shows the stock trading in a sideways channel. The stock has been creeping up on the top of the channel recently and may be making a push to see if it can break resistance.

The stock is trading in a channel with support near the $3000 level and resistance near the $3500 level. The support and resistance lines can be found by connecting the lows and the highs. These lines represent areas on the chart where the price has struggled to get above or below.

The stock is trading above the 200-day moving average (blue), indicating bullish sentiment for the year

What's Next For Amazon? 

Bullish traders would like to see Amazon build higher lows up to the top of the channel. A cross above resistance with some consolidation could bring the price to see a higher push.

Bearish traders would like to see the stock fall back to the support level. If the price were to cross below this potential support level, the stock may see a further bearish push.

Volume is key to watch as well when the stock is nearing the support or resistance lines. If the stock were to cross one of the lines with strong volume, the stock may see a further push in the same direction. Low volume at a key level may hint a trend change is coming.

Disclosure: © 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.