Amazon shares jump as stock buying pressure builds

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Amazon rises 2.53% today on AI boost

Highlights

Amazon announces a $200 billion investment plan centered on AI expansion to strengthen AWS growth prospects.
New partnerships with OpenAI and increased Nvidia GPU integration position AWS to meet rising AI service demand.
Technicals indicate bearish signals with weak trend momentum, expecting the stock to trade between $207.65 and $214.17 over the next week.

AWS investment surge and AI deals spur market reaction and volatility

Amazon shares are moving following the announcement by CEO Andy Jassy of a $200 billion capital expenditure plan focused on artificial intelligence expansion, aimed at driving growth in Amazon Web Services (AWS). The company has also announced high-profile partnerships, including a multibillion-dollar agreement with OpenAI and increased Nvidia GPU deployments, supporting growing demand for AI-driven AWS services. Additionally, AWS operations in Bahrain recently experienced service disruption due to drone activity.

Anton Kharitonov, expert at Traders Union, views Amazon’s recent uptick as a technical rebound within a weak structure. He notes that the stock is struggling to recover above key moving averages while short- and medium-term momentum remains bearish. The bullish AI investment narrative is overshadowed by negative momentum signals, with indicators like MACD, RSI, and CCI pointing to persistent seller dominance. Service disruptions at AWS add operational risk and may hinder confidence. Kharitonov warns, "Despite headline optimism, the technical and sentiment backdrop shows no sign of a sustainable rally for Amazon at this stage."

Viktoras Karapetjanc, expert at Traders Union, believes Amazon’s long-term opportunity remains strong due to aggressive AI capital spending and strategic cloud partnerships. He sees management’s $200 billion commitment and high-profile deals as reinforcing AWS’s growth trajectory and market leadership. Short-term volatility is natural, and the bullish structure remains intact for patient investors. Karapetjanc states, "AI-driven expansion and resilient cloud demand create multiple setups for further growth in Amazon's core business."

Seller dominance persists as momentum stays negative amid key resistance

The nearest dynamic resistance for AMZN is at the MA-50 ($219.34), with key support near the Kijun line from the Ichimoku at $208.24. Momentum indicators show the MACD remains in negative territory, signaling a bearish bias; the Average Directional Index (ADX) is neutral, suggesting weak trend strength. The Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) are all in the "sell" zone on the daily timeframe, indicating a lack of near-term buyers and no true oversold condition. The Bull/Bear Power (BBP) value is negative, highlighting persistent downside pressure and seller dominance in intraday momentum.

Earlier, analysts noted that Amazon's aggressive AI infrastructure investments could further concentrate wealth among large tech firms and their institutional backers. With the stock now consolidating below medium-term resistance despite these significant capital commitments, traders should closely monitor for a decisive move above $219.34 as a signal of renewed bullish momentum or, conversely, sustained weakness should downside pressure persist.

Source of Data: AMZN Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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