Amazon (AMZN) Stock Price Surpassed $230 for the First Time

On 12th November, while analysing Amazon (AMZN) stock chart, we:

→ drew two ascending channels (a long-term one marked in blue and a steeper one represented by black lines);
→ anticipated a test of the $200 level as part of a correction.

According to the AMZN chart, since then:
→ the price corrected with a test of the $200 level (indicated by an arrow), aided by the median line of the blue channel;
→ it continued to climb within the mentioned channels, reaching a new all-time high — this week, the price hit $233.

Positive market sentiment is driven, among other factors, by:
→ Amazon's strong earnings report for the previous quarter;
→ expectations of a Federal Reserve rate cut, which helped the Nasdaq 100 index reach a new record, as we reported yesterday.

Can the price continue rising?

Technical analysis of Amazon’s stock chart today suggests this might be challenging because:
→ the price is near the resistance lines of both channels;
→ the RSI indicator is in the overbought zone, and you can spot a bearish divergence forming (a sign of weakening buyer momentum).

Given these arguments, the price could undergo a correction. If so, it might drop to the lower boundary of the short-term black channel.

According to TipRanks:
→ 45 out of 46 surveyed Wall Street analysts recommend buying AMZN stock;
→ on average, they predict AMZN’s price will reach $244 within 12 months.

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