Can Amazon break resistance to surge higher?
Shares in Amazon have spent much of the past six months in a trading range, forming a descending triangle technical chart pattern. While some stocks have started to move based on upcoming earnings announcements, Amazon shares are currently hovering around technical resistance.
The chart below shows the descending triangle formation that has formed on the price chart of Amazon. The $2,900.00 price level has been a significant area of support but now we’re at the top of the descending resistance line.
If the price can break through there may be another run higher to at least the all-time high price level around the $3,550.00 price level.
Source: Admirals MetaTrader 5, AMZN, Weekly - Data range: from Feb 16, 2014, to Apr 15, 2021, performed on Apr 15, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
As we move into US earnings season, this could be the last chance for a push higher before the seasonal ‘sell in May and go away’ stock market pattern. Amazon is due to post earnings on 29 April so watching price action within the descending triangle pattern will be interesting.
Some traders may even try to position themselves early on so keeping track of the volume will also be an important metric. The indicator is available in the MetaTrader trading platform provided by Admirals.
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