Amazon Stock Price Roadmap: Targeting $240 on Technical Indicators

Amazon Stock Price Roadmap to $240

Amazon (NASDAQ: AMZN) has recently shown a significant recovery following a sharp decline between July and August 2024. Despite experiencing a notable drop from its yearly highs above $200, largely due to a broad stock market downturn at the start of August, Amazon has initiated a strong recovery. Over the past two weeks, the stock has posted its strongest performance since October 2023, marking a crucial rebound from the losses sustained in the preceding months.

This rebound is particularly noteworthy given the stock’s technical setup, which now suggests the potential for further upside, with a target price of $240.

Technical Analysis of Amazon's Price Movement

In analyzing Amazon’s recent price action, trading expert TradingShot highlights the significance of the stock’s adherence to a long-term upward channel, known as a Channel Up, which has persisted for over 2.5 years.

• Recent price movements indicate the stock faced crucial resistance levels.
• Support levels from the 50-week moving average underscored its importance.
• Historical data shows breakouts above the 50-day moving average yield substantial gains.

Current Market Conditions and Indicators

Historically, breaking above the 50-day moving average has led to significant increases of up to 79% and 69%. The current resistance level stands as the final hurdle before a confirmed breakout toward the $240 target.

The current Channel Up pattern reflects a series of higher lows and higher highs, indicating a sustained bullish trend. A rise in RSI towards overbought levels could coincide with achieving the price target.

Amazon is likely on track to breach the 50-day moving average within months, potentially reaching the target by early 2025, provided market conditions remain stable.

Investors should watch for a confirmed breakout above the 1D MA50 as a bullish signal leading to higher prices.