Amazon stock gains with AWS expansion fueling bullish technical strength: weekly forecast

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Amazon rises 3.51% over the week

Highlights

Amazon maintains a firm bullish trend, trading well above major moving averages and supported by rising price action.
Momentum signals are mixed with strong MACD buying interest countered by low ADX and neutral oscillators, flagging possible near-term consolidation.
Shares are expected to oscillate between $233.15 and $259.85 this week, with $250 as key resistance and $235 as critical support.

AI and AWS expansion drive weekly optimism amid robust earnings growth

Amazon advanced its artificial intelligence and cloud capabilities with a major expansion of its Amazon Web Services (AWS) infrastructure, including a multi-billion-dollar data center investment in Missouri. The company successfully closed a C$13.967 billion debt offering and secured $17.5 billion in loans to support ongoing cloud and AI investments. Strong quarterly earnings were underpinned by AWS's fastest growth in over three years and record revenue from its chips business, with enthusiasm also building for the upcoming Prime Day event.

Mixed weekly signals as uptrend endures with subdued trend strength

On the weekly timeframe, AMZN remains in a strong uptrend, with price holding securely above the MA-20, MA-50, and MA-200. Dynamic support is provided by the MA-20 and MA-50, while resistance is observed near the recent highs. Weekly indicators present a mixed outlook: the MACD signals buying momentum, but the ADX is low at 13.54, implying a weak or undecided trend. RSI stands at 52.88, showing moderate bullishness, while Stochastic RSI and CCI are neutral. Bull/Bear Power is slightly positive at 0.36, reflecting some recent selling pressure but overall positive sentiment. Volatility for the week was measured at 5.73%.

Consolidation likely next week as volatility and breakout risks persist

Over the next five trading days, AMZN is likely to consolidate within a range of $233.15 to $259.85, according to weekly indicator signals and projected volatility. A horizontal price movement is expected as buyers and sellers achieve near-term equilibrium, with an equal probability of the price moving higher or lower. A decisive close above $250 could set the stage for a move toward $260 if momentum improves, while a drop below $235 may open the way for a retest of lower support levels near the MA-20.

Anton Kharitonov, expert at Traders Union, sees Amazon posting another week of gains as the price remains firmly above all major weekly moving averages. He notes the positive impact from AWS expansion and strong earnings, but remains cautious due to mixed technical signals and low trend strength. Kharitonov stresses that volatility was significant and weekly indicators are not aligned, with MACD bullish but ADX and other oscillators more neutral. The analyst believes that consolidation is likely, with the price fluctuating between $233.15 and $259.85 as buyers and sellers balance out. Only a decisive move beyond key resistance or support will clarify the next trend. "Until we see a weekly close outside the current range, I remain defensive and prefer to wait for clearer momentum before becoming positive on AMZN," he says.

Earlier, analysts noted that SpaceX’s rapid ascent has drawn attention to market dynamics at the top of the global equity ranks, challenging well-established tech giants like Amazon. The current analysis highlights Amazon's technical strength and robust AI-driven growth, suggesting that sustained momentum above the $250 level could catalyze a renewed advance toward $260 in the coming sessions.

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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