Victoria Bazir
Amazon (AMZN) climbed more than 10% on Thursday, hitting its strongest level since February 2025. Trading near $246, the stock is approaching the crucial $250.50 resistance zone as investors grow increasingly confident in the company's cloud, retail, and AI businesses.
Chart Overview: Momentum Near All-Time Highs
The daily chart reveals a powerful bullish candle within the highlighted yellow zone, indicating strong buying pressure. Following months of gradual accumulation, Amazon has regained its upward momentum, advancing over 40% from April's low near $170. According to Barchart, the technical setup suggests continued strength if current levels hold. The next major resistance sits around $250–$251, marked by the dashed red line—a critical barrier that previously capped several rallies earlier this year.
If the stock holds above $240, traders may interpret this consolidation as a healthy breather before the next move higher. Support now rests near $230, which served as a pivot during the mid-year rally.
Catalysts Behind the Surge
Amazon's recent strength stems from impressive Q3 results in AWS and advertising, with both segments posting double-digit growth. AWS revenue jumped 20% year-over-year, marking its strongest performance since 2022, while advertising expanded by 24%. These figures underscore Amazon's commanding position in cloud infrastructure and its expanding presence in AI-driven services and digital media. Investors are also responding positively to Amazon's emphasis on AI integration and logistics automation, themes CEO Andy Jassy highlighted during recent earnings commentary. The broader tech sector recovery and easing rate expectations are providing additional tailwinds for growth-oriented stocks.
Key Resistance in Focus
Amazon's ability to sustain momentum above $245 will be critical in the coming sessions. A clean break above $250.50 could unlock a path toward $265–$270, representing the next Fibonacci target zone. However, a decline below $230 would signal short-term exhaustion before any further upward movement.
Strong Fundamentals Support Further Gains
Amazon's rally combines technical strength with solid business execution. With AWS growth accelerating, advertising revenue climbing, and new AI initiatives gaining momentum, AMZN looks well-positioned for continued outperformance into 2026—as long as it maintains its current trajectory above the critical $250 threshold.
Victoria Bazir
