SAN FRANCISCO - OCTOBER 11: Amazon logo on black shiny wall in San Francisco mall in California on October 11, 2015. Amazon is an American international electronic commerce company. It is the world's largest online retailer.
Amazon (NASDAQ: AMZN) stock price has been rallying since its March 2023 lows. The stock of the tech giant has generated 31% returns during this time, and the bulls seem to have more gas left in the tanks. The stock has also broken above 200 MA, which is a sign of strength.
On Thursday, Amazon stock was up 0.78% in pre-market after a 1.85% surge on Wednesday. Since the start of the week, the stock of the e-commerce giant has risen by 4.75%. This also marks the third week of upward price action for the leading tech stock.
According to the latest Amazon news, the company plans to invest $12.7 billion in the world’s most populous country. The investment will be made over the next seven years to meet the growing demand for cloud services in the South Asian country. Amazon stock price has reacted positively to the news.
This investment will put the overall investment by the tech giant in the country at $16.4 billion. This follows the $3.7 investment that was made from 2016-2022 for the development of two data centers in Hyderabad and Mumbai. Amazon is not the only leading tech company investing in India, as Apple, Microsoft, and Google also have the Indian market in focus.
Technical analysis of NASDAQ: AMZN reveals that the bulls are gaining momentum after breaking above the $103.2 support level. Considering the momentum behind the current bullish push, the stock may soon tag its 200 MA, which lies at $131.7. This will be a 14% price increase from the current level. The invalidation will be a daily closure below $103.
The following chart also shows that the price is currently trading close to the 0.5 fib retracement level. As long as the price remains in the $114-$122 region, there will always be a possibility of a pullback. A break above the 200 MA may also result in a bigger push toward the $146.7 resistance.
I’ll keep sharing my updated price outlook on Amazon & other stocks in my free Telegram group, which you’re welcome to join.
This post was last modified on May 18, 2023, 13:47 BST 13:47