Peter Smith
Amazon (AMZN) has regained bullish momentum after reclaiming the critical $222 support level, hinting at a possible rally toward $228 if buyers can maintain their grip on the stock.
Strong Rebound from a Double Bottom
Amazon closed at $223.59, gaining +0.81% for the session. The stock recently confirmed a double bottom pattern near $222, which has now turned into a crucial support zone. According to trader BRITT, holding above this level strengthens the bullish case, with a potential run toward $228 or higher in the short term.
The double bottom formation often signals a reversal from a downtrend, and in Amazon's case, it appears to be playing out as expected.
Chart Analysis: Key Levels to Watch
The 4-hour chart reveals several important technical signals:
- Support Zone: $222 has emerged as a key pivot after being tested multiple times
- Resistance Levels: First resistance sits around $224, with the next target at $228–230
- Momentum Indicators: Price action has climbed back above the moving average ribbon (red and green bands), indicating improving momentum
- Candlestick Patterns: Recent strong green candles show buyers stepping in after consolidation, suggesting potential for volatility expansion
The technical picture aligns with the bullish outlook, showing Amazon could extend its upward move if momentum holds steady.
What's Driving Amazon's Stock?
Beyond the technicals, Amazon is being supported by solid e-commerce activity, continued AWS cloud growth, and improving consumer demand. Seasonal optimism heading into the holiday shopping period is also boosting investor confidence. On the macro front, expectations of cooling inflation and a more dovish Federal Reserve are helping lift growth stocks like Amazon.
Market View
If Amazon stays above $222, bulls are likely to target $228–230 in the near term. A strong break through that zone could pave the way for additional gains, while a drop back below $222 would undermine the bullish setup. For investors, Amazon's current position near support represents a pivotal moment where the next market direction could soon become clear.
Peter Smith
