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- 1 Amzn stock price closed at $114.99 while observing a decrease of -0.02% during the last intraday session.
- 2 Amazon price trades above all the major EMAs – 20,50,100 and 200-day.
- 3 The year-to-date return of Amazon stock is +34.55% while S&P 500 return is +9.93%.
The bullish rally for AMZN stock price began at the start of 2023 when the price started to rise from the low of $81.43 causing an increase of approximately 38%. The uptrend helped the price in forming a high at $114 level.
AMZN’s price then corrected the bullish move by falling to the $88 level after which price started an uptrend again forming higher lows.
Recently, AMZN stock price has crossed above the yearly high of $114 and started to decline so as to retest the previous zone. The price has formed support at $114 and the previous candle has closed bullish.
If bulls are able to sustain the bullish momentum and can push the price above the immediate resistance of $118.60 level, there is a higher probability for the price to head toward the $121 and furthermore toward $136.50 level.
Amazon’s Beats Consensus Estimates
E-commerce giant Amazon recently released the Q1 earnings result on 27 April. Amazon outperformed the consensus estimates of both revenues as well as earnings per share. Consensus estimated the revenue to be $124.60 Billion and it turned out to be $127.35 Billion, a surprise of $2.75 Billion(2.21%).
The estimate for EPS was $0.213 and Amazon reported EPS of $0.31. In the previous quarter, Amazon reported a net income of $278 Million and Q1 reported a net income of $3.17 Billion.
North American retail also saw a huge jump in profitability, boasting double-digit sales growth year-over-year(YOY). Analysts expect Amazon’s stock price to reach $135, an upside potential of roughly 18%.
Growth in its AWS business is likely to accelerate as the enterprise shifts toward the cloud. Amazon’s advertising services are witnessing strong engagement with revenue increasing by 23% in the first quarter.
Will AMZN Stock Price Reach the $135 Level?
The relative strength index traded at 63.50 in the previous session indicating strong bullish momentum in the price. Price received a short-term pullback after RSI crossed the 70 mark and reached the overbought zone.
The Chaikin money flow score is 0.08 indicating strength in the market and favoring the buying side. AMZN stock price traded above the major EMAs showing strong bullish momentum. The price reached the upper band of Bollinger and received a short-term pullback.
If AMZN’s stock price shatters the support of $114, it can fall directly on $110, causing a downfall of approximately 3.45%.
Conclusion
Amazon is well positioned to deliver solid financial results in the long term due to ease in the inflationary pressure on margins and its leadership in the cloud and e-commerce business. The technical indicators favour the buying side. Let’s see where AMZN stock price might head in the upcoming days.
Technical levels
Major support: $110 and $114
Major resistance: $121 and $135
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
