Usman Salis
Amazon (AMZN) shares are catching traders' eyes again. After drifting sideways for weeks, the stock is climbing higher, and momentum signals suggest $230 has become the critical level to watch. With bullish call flow showing up and institutional money moving in, Amazon might be gearing up for its next meaningful push.
Technical Setup
Amazon has broken out of its consolidation pattern on the daily chart, according to Rocky from The Stock Trader Hub. The stock closed the latest session at $227.74, up 1.12%, with volume topping 46 million shares - a clear sign more traders are jumping in.
The chart reveals a few important points. Support has formed a solid base around $215 where buyers have consistently shown up. Resistance is sitting right at $230, with a secondary level at $238.85 marking the recent high. The price is now trading above both the 20-day and 50-day moving averages, which points to building upward momentum.
Options activity tells an interesting story too. Bullish calls above $230 are getting heavier, reflecting stronger conviction from institutions. When call buying picks up like this, it usually means traders are positioning for more upside. Many are now eyeing $250 as a realistic near-term target if the momentum holds.
Investor confidence isn't just technical - it's backed by fundamentals. Amazon Web Services continues to dominate cloud computing and is pushing deeper into AI. The advertising business keeps growing and improving margins. Even with broader market jitters, Amazon's diverse revenue mix gives it staying power.
What Could Push Amazon Higher
A few things could fuel the next leg up. Earnings growth from cost discipline and stronger AWS profits would help. AI adoption is another angle - integrating generative AI into AWS services adds serious long-term potential. And despite economic concerns, e-commerce demand has stayed surprisingly stable.
If bulls can push the stock decisively above $230, a retest of $238.85 becomes likely, with $250 not far behind. On the flip side, if the stock slips below the $220–$224 zone, it could pull back toward that $215 support level.
Usman Salis
