Amazon Stock Eyes Bullish Breakout as Price Holds Above 200-Day Moving Average

Amazon.com Inc. (AMZN) is showing signs of a potential bullish breakout on the daily chart, as the stock attempts to emerge from a classic bullish flag pattern. Currently, Amazon shares are trading around $205.97, following a successful test of the 200-day moving average (200MA) — a key technical support level that is reinforcing the case for further upside.

Amazon Stock Technical Outlook

The 200-day moving average, now positioned at $200.75, has proven to be a crucial support area. The bounce from this level has helped sustain bullish momentum, putting the next resistance target at $214.82 in focus. A clear breakout above $214.82 could pave the way for a move towards the next major resistance at $219.93.

Downside Risk and Key Support Levels

On the downside, a break below the 200MA could shift the bias to bearish, potentially triggering an attempt to fill the price gap left on 9 May. For this to occur, Amazon’s share price would need to first breach the 23 May low of $196.02, with the gap closing near $193.

Momentum Indicators: Stochastic Rising

From a momentum standpoint, the Stochastic Oscillator is currently trending higher, which may support Amazon’s share price in the short term. A continued uptick in momentum could strengthen the breakout scenario and encourage further buying interest.

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Conclusion: Amazon stock is at a pivotal point technically, with a potential bullish flag breakout forming above key support. Traders should monitor the price action closely around the $214.82 resistance and 200-day MA support at $200.75, while watching for continued signals from the Stochastic Oscillator.