With Amazon's recent breakthrough past the $200 resistance ceiling, the stock may be primed for further gains in the coming months. This pivotal level, previously acting as a cap on upward momentum, could now serve as a foundation for a rally. Historically, Amazon stock demonstrated a strong performance after a similar breakout in 2020, surging by 53% over the following year. If we apply that growth pattern to the current situation, Amazon could see a potential increase of approximately 30% from its current price of $207.46, suggesting a target of around $271 over the next 12 months.

Key Support Levels and Potential Downside Risks

In the near term, Amazon's immediate support now aligns with the previous resistance level at $201.12. This level should act as a new support floor, stabilising the stock unless a break occurs below this mark. If the price dips under $201.12, it may prompt a test of deeper support around $188, close to the key resistance seen in 2021. Only a drop below $180 would signal a more substantial downside risk, potentially opening the door to a more significant decline.

Technical Indicators Signal Renewed Bullish Momentum

Technical indicators for Amazon stock are aligning positively for the first time since late May, signaling renewed bullish momentum. The MACD has crossed above its signal line, a typical buy signal, while the RSI is at 67, indicating that bullish sentiment is gaining strength but still leaves room for growth. Importantly, there is no technical resistance above the current price levels, potentially paving the way for further gains.

Outlook for Amazon Stock in 2024

With the combination of strong support levels and positive technical signals, Amazon appears well-positioned for growth through 2024. Investors should watch closely for confirmation of these support levels holding, as well as any continuation of bullish indicators, to gauge Amazon’s potential for sustained upward momentum.