Saad Ullah
Amazon's stock (NASDAQ: AMZN) is staging a comeback after testing key support at $211 — matching its August low. Ironically, the widely publicized AWS outage may have triggered the very bounce that signals the end of AMZN's months-long slide.
The Ironic Turnaround
In a recent post, TrendSpider highlighted, the AWS outage that initially spooked investors might actually mark the capitulation point — that moment when fear peaks and smart money steps in. The chart backs this up: the bounce from support happened right as the outage headlines hit. Markets often move this way, turning bad news into buying opportunities when everyone else is selling.
The stock has pushed toward $218 with back-to-back green candles, suggesting renewed buyer interest. The volume profile shows strong activity between $215–$225, indicating this range could become a new base for the next move up.
What's Next
After lagging behind tech peers like Microsoft and Alphabet most of the year, Amazon is attempting a technical reversal. Concerns about slowing AWS growth and consumer spending have weighed on the stock, but the fundamentals remain solid. With AI investments ramping up and e-commerce holding steady, a shift in sentiment could translate quickly into price gains — especially if upcoming earnings show AWS stability and better margins.
If this bounce holds, the next hurdles sit around $225 and $230–$235, areas where previous sellers may resurface. But for now, the momentum indicators and volume patterns suggest buyers are gaining control.
Sometimes the worst headlines create the best entry points. What looked like another negative story — an AWS service disruption — may turn out to be the exact moment Amazon bottomed. The technical setup, strengthening momentum, and steady volume all point to early recovery signs. Whether this becomes a sustained rally or just a short-term bounce depends on how the stock handles resistance ahead, but the pieces are falling into place for a potential turnaround.
Saad Ullah
