Amazon Hits Key Technical Level – Is It a Buy or a Warning Sign?

Amazon’s stock has been on a wild ride over the years, climbing steadily within a well-defined trend channel. If you look at the long-term chart, stretching all the way back to 1998, you’ll see a clear upward trajectory, with key support and resistance levels shaping its movement.

One of the most important trendlines has been the green support zone. This level has played a crucial role in Amazon’s history, acting as a safety net during major downturns—the Tech Bubble in 2000, the Financial Crisis in 2008, and again in 2022.

Recently, Amazon tested this support once again in January 2023 before launching into a strong uptrend. It broke past the $200 mark, an important psychological and technical level, before hitting resistance in the gray-shaded area of the chart. Over the last few weeks, the stock has been struggling to push higher, facing rejection but still holding onto the $200 support level.

A Make-or-Break Moment at $200

Switching over to the weekly chart, another trend channel has formed since Amazon’s 2023 low. Once again, we see green, gray, and red trendlines acting as support and resistance zones. The stock recently pushed into the gray zone from the monthly chart but got rejected, bringing it back to a very important support area around $200.

This level has been significant before. In July last year, Amazon hit resistance at $200, leading to a sell-off. Now, it’s sitting right at that mark again, but this time as a potential support zone.

The big question is: Will it hold?

If $200 acts as a strong support level, we could see the short-term uptrend continue, with the stock pushing higher once again. The green-shaded area from the weekly chart supports this possibility.

But if Amazon breaks below $200, things could get tricky. The next major support zone on the monthly chart sits around $170, meaning the stock could drop further before finding its next strong buying level.

What Comes Next?

For now, all eyes are on the $200 mark. If Amazon holds above it, the two-year uptrend remains intact, and we could see another rally. But if it falls below, the longer-term trend channel from the monthly chart may take over, pushing prices lower before stabilizing.

One thing is certain—this is a key moment for Amazon, and the next move could set the tone for its stock performance in the coming months.

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