Asset Watch
Tuesday July 2, 2024
Amazon’s July and November 2021 highs were $188.65 and $188.11, and the stock closed at $193.25 on Jun. 28. As a result, it needs to hold above the $188 area to confirm the breakout.
The 20-week moving average is also a key support level, as the stock bounced near it in April and May 2024. And with the metric ending last week at $181.15, it will keep rising the longer Amazon trades above it.
The moral of the story is that Amazon’s 20-week MA will eventually collide with the $188 breakout area, and the stock will either break down like in September/October 2023 or soar toward Bank of America’s $220 target. Consequently, you should monitor the $188 area, and if it holds, a long position is justified.
So, will Amazon mirror Apple and confirm the breakout, or should you remain cautious in the weeks ahead?