Shares of Amazon (AMZN) weren’t looking so good just one month into 2016. In fact, AMZN was trading off its 2015 highs by over 30 percent at one point in February of this year. Yep, Amazon stock price closed at $482 on February 9th.
But since that early February stock bottom, Amazon bulls have lead the stock on a relentless rally to new highs.
After poking its head above $700 this week, investors are now asking: Is Amazon stock price in the beginning stages of a major breakout? Consider the following (see chart below for reference):
- As the stock of Amazon (AMZN) rallied more than 100% in 2015, it found support on numerous occasions at the Up trendline shown in the chart.
- Amazon stock price broke down through the trendline in January of this year, theoretically turning the previous support into resistance.
- While breaking out to all-time highs again in the past few days, AMZN has recovered the top side of the trendline, once again theoretically turning the line back into support.
Amazon Stock Chart – AMZN Daily
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Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
