Amazon (NASDAQ: AMZN) stock price has been performing quite well for the past few weeks. Our analysis shows that the Amazon share price is retesting a very key resistance level which will decide the direction of the next big move. The stock of the tech giant is currently 18.5% up from its March lows.
On Tuesday, Amazon shares opened in green and rose by 1.17% during the first hour. At press time, the stock was trading at $103.55. This also marked the 5th consecutive green day for the stock of the biggest online retailer.
Amazon To Boost Australian Data Centers By $13bn
According to the most recent Amazon news, AWS is investing $13 billion in expanding its Australian cloud computing. The move will expand the data centers in Melbourne and Sydney while creating around 11,000 full-time jobs. Amazon Web Services will invest the amount over the next five years.
Last week rumors of Amazon’s interest in taking over the movie theatre chain AMC circulated. Although AMC CEO declined to comment, AMC stock surged on the rumors. However, Amazon stock price remained unaffected. According to Wedbush analysts Alicia Reese and Michael Pachter, Amazon taking over AMC ‘doesn’t make sense’ and ‘Amazon would be better off buying a piece of Cineworld’.
Amazon Stock Price Can Have A Pullback Soon
The daily chart of NASDAQ: AMZN shows that the stock is currently retesting the $103 level resistance. The $103 level is one of the most significant levels on the Amazon share price chart, as it has acted as a support and a resistance on many occasions. The 200-day moving average on the daily chart also lies just above this resistance which makes it more significant.
Considering the current state of the chart and the broader market sentiment, my Amazon stock price forecast is for a pullback from current levels. This pullback may occur from the current level or the $107.5 level, where lies the 200 MA on the daily chart.
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