Saad Ullah
After weeks of sideways trading, Amazon (AMZN) is displaying encouraging signs of recovery that long-term investors are starting to notice. The stock has defended a critical support zone and appears to be building momentum for its next move higher. The chart reveals a structure that favors gradual accumulation rather than panic selling, suggesting the correction phase may be winding down.
Technical Picture: Buyers Defend the $211 Support Zone
The daily chart highlights a crucial defense zone between $208 and $211 where buyers have consistently stepped in. This level previously acted as resistance and has now successfully flipped to support. Amazon closed the most recent session at $224.21, up 1.41%, after bouncing off this support with expanding green volume bars forming at the base of the move. A recent post from trader JarvisFlow encouraged traders to "keep buying the dips," reflecting growing confidence in this technical setup.
A descending trendline from September's local highs is being tested again, suggesting the stock may be attempting to shift its momentum. The next meaningful level sits around $230, and clearing that barrier would open the path toward $242.50, a region that aligns with the upper resistance visible on the chart.
Volume Profile and Momentum
Volume analysis confirms steady accumulation is taking place. Recent upswings show noticeably larger green bars compared to the previous downtrend. Each decline into the $210 area has triggered swift rebounds, indicating that institutional buyers are likely adding positions on weakness rather than heading for the exits.
This accumulation pattern strengthens the case that Amazon represents a buy-the-dip opportunity rather than a short-term trade. The balance between consistent inflows and tightening price action suggests volatility compression before a potential directional breakout.
Macro Tailwinds: Tech Recovery and AI Optimism
Beyond the chart structure, Amazon's fundamentals continue benefiting from the broader tech sector's recovery and the rapid integration of artificial intelligence across cloud services. The company's AWS division remains central to AI-driven data infrastructure expansion, drawing parallels with recent market themes around massive buildouts in computational capacity and machine learning infrastructure.
As enterprises accelerate spending on machine learning and digital logistics, Amazon is positioned to capture meaningful upside from this shift. This theme is increasingly reflected in institutional positioning and analyst revisions, adding fundamental support to the technical picture.
Range-Bound but Bullish Bias
For now, the $210 to $230 range remains Amazon's tactical battleground. Key levels to watch include:
- Above $230: A sustained close here could attract momentum traders and confirm a medium-term reversal
- Below $208: A break would invalidate the bullish setup and suggest renewed weakness
Still, with solid fundamentals, rising demand for AI-driven cloud capacity, and buyers consistently defending support levels, AMZN appears positioned for steady accumulation heading into Q4. The technical structure favors patient buyers willing to add on dips, while the macro backdrop provides a supportive fundamental narrative for the stock's next leg higher.
Saad Ullah
