Amazon (AMZN) shares jump more than 7%

As shown in the Amazon (AMZN) share chart, the price surged by over 7% yesterday, breaking above the key psychological level of $200 and closing at its highest point since early March.

The sharp rise in demand was driven by reports of a trade truce between the US and China following talks in Geneva. According to Reuters, the US has decided to lower the “de minimis” threshold on goods from China. This move could help de-escalate a potentially damaging trade war between the world’s two largest economies. For AMZN stock, this is a bullish signal, as Amazon sells a wide range of low-cost Chinese goods.

Technical analysis of Amazon (AMZN) shares

From a bearish perspective, the AMZN price has recovered to the 0.618 Fibonacci retracement level after falling from an all-time high to the early April low. In this context, selling pressure may re-emerge with the intention of resuming the downtrend—especially as most oscillators on the chart are signalling strong overbought conditions.

From a bullish perspective:
→ The pattern of higher highs and higher lows in late April and early May may have outlined the median of an ascending channel;
→ Yesterday’s price surge in AMZN shares may point to the channel’s upper boundary.

Given these conditions, it is reasonable to expect a minor pullback before the Amazon’s stock price resumes its upward trajectory within the blue channel.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.