Amazon (AMZN) has broken out into all-time high territory, closing at $200.02 (above last week’s all-time high mark of $199.84).
AMZN stock is firing on all cylinders and ready to take on all AI titans as it enters the space from the e-commerce angle. Some analysts believe Amazon’s AI initiatives—particularly in healthcare, advertising, e-commerce, and cloud computing—could push the company towards a massive $3 trillion valuation.
Amazon dominates US e-commerce with a whopping 37.6% market share, and its AWS leads the cloud market. Given its dominant position and AI adoption, analysts predict nearly 30% annual earnings growth for the next few years.
Analyzing AMZN Stock, Technically
Technically, as is the case fundamentally, AMZN’s price action is firing on all cylinders (see chart below).
CHART 1. DAILY CHART OF AMAZON. Amazon’s SCTR score is over the 90 line, which is exceedingly bullish.Chart source: StockCharts.com. For educational purposes.
AMZN’s SCTR score is now soaring above the 90 line (dashed line in top panel), which indicates technical bullishness across several indicators and timeframes. Based on the Chaikin Money Flow (CMF) reading, buying pressure and momentum show no signs of slowing.
Eyes on AMZN Stock Breakout Point
Amazon just breached the $199.84 level (see heavy dotted-blue line on AMZN stock price chart), entering all-time high territory. Analysts’ top price target is $245, which could change based on broader economic conditions and Amazon’s AI moves in the coming quarters.
All rallies take a break. If AMZN’s stock price dips, the following are key support zones to watch for buying opportunities:
First stop. Between $191 and $192, where AMZN broke above its 2021 all-time highs.
Next up. Amazon’s price often bounces off the 50-day and 100-day simple moving averages (SMAs), which investors use as entry points. These might continue to be solid buy zones.
Broader range. The Ichimoku Cloud lays out additional support levels, aligning with current supports. The green, rising, and widening cloud is a bullish sign.
It’s About Earnings
Amazon expects to report its next earnings on August 1, 2024, after market close (this is subject to change). Earnings results and guidance can significantly sway market sentiment, so keep a close eye on the levels if you’re trying to time your buys (or sells).
The Bottom Line
AMZN’s stock price smashed its all-time high, closing at $200.02. With its dominance in e-commerce and cloud computing, and now combined with new AI initiatives, some analysts see a path to a $3 trillion valuation. Technically, Amazon’s indicators are bullish, with the SCTR score soaring and strong buying momentum. Keep an eye on support zones if the stock dips, and watch out for the next earnings report.
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
