Eseandre Mordi
⬤ Amazon stock (NASDAQ: AMZN) is trading near $240.93, approaching a major resistance zone in the mid to high $240s where it was previously rejected in late 2024. The stock failed to hold above this level during its last attempt, with sellers stepping in to push prices back down. Now AMZN is making another run at breaking through this key barrier.
⬤ The daily chart reveals a long-term rising trendline that's been in place since April 2024, providing consistent support during pullbacks. This trendline has held up through multiple tests, keeping the broader uptrend alive. Heavy volume activity around current price levels shows this resistance zone has been significant for traders historically.
⬤ A squeeze pattern is forming on the momentum indicators, signaling that price is compressing and energy is building. This comes after the previous failed breakout attempt and suggests Amazon shares might be gearing up for a directional move. The stock remains trapped inside a tightening range as it retests the resistance area.
⬤ This setup is important because AMZN sits right where long-term buying interest meets selling pressure. How the stock responds to this retest could influence sentiment across large-cap tech stocks. Whether Amazon finally breaks above resistance or gets rejected again will likely set the tone for its near-term direction.
Eseandre Mordi
