Amazon stock resistance test: Price targets to watch

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Amazon jumps 3.09% to $261.91 today

Highlights

Amazon signed a long-term nuclear power deal to ensure stable and scalable energy for AWS growth in cloud services.
AWS posted 37% growth in October, its fastest in more than four years, as enterprise demand and higher retail margins boosted performance.
Shares of Amazon closed at $261.91, gaining 3.09%, with technical signals showing strong bullish momentum and an expected range of $256.31 to $265.97.

Cloud growth and ai investment reinforce operational momentum

Amazon's recent long-term nuclear-power agreement to support AWS data center expansion creates a stable foundation for the company's continued growth in cloud services, ensuring reliable and scalable energy resources for future operations. According to Tradingkey, AWS achieved 37% growth in October, marking its fastest expansion in over four years and underscoring robust enterprise demand, while gains in advertising revenue and improved retail margins have further bolstered operational performance. The integration with Anthropic has introduced earnings volatility as Amazon invests heavily in artificial intelligence and related partnerships. These developments collectively reinforce the company's fundamental momentum, with Thecerbatgem, Moneycheck, and Tradingkey providing data on key operational drivers.

Overbought technical signals as bullish momentum prevails

On the technical front, AMZN/USD currently trades above the MA-20 ($257.31) and MA-50 ($253.4) on the hourly chart and above the MA-200 ($241.97) on the daily timeframe. The Ichimoku Kijun at $256.12 offers immediate support. MACD is in a Strong Buy state, ADX signals Buy, RSI reads 64.28 (Buy), and Stochastic RSI provides a Strong Buy signal. Both the CCI and Bull/Bear Power indicators point to overbought conditions and ongoing buyer dominance, indicating elevated intraday sentiment. The Awesome Oscillator remains neutral and does not provide additional trend confirmation.

Bullish bias expected as volatility band guides near-term moves

For the next few sessions, the expected volatility band is $256.31 to $265.97. Probabilities favor an upward move, with the base scenario expecting AMZN to remain within this corridor. A breakout above $265.97 would open further upside, while a reversal below $256.31 might trigger profit-taking and another test of immediate support.

Anton Kharitonov, expert at Traders Union, sees Amazon’s technical strength supported by recent corporate actions. He notes that while fundamental momentum is building around AWS and advertising, volatility from AI investments and heavy expansion spending could limit near-term upside. Kharitonov remains cautious at current levels, watching for a break of $265.97 before adopting a more positive stance. "My outlook is defensive — unless Amazon clears $265.97 with conviction, I’d avoid chasing strength and look for signs of profit-taking."

Previously it was reported that growing scrutiny and community opposition surrounding AI data center expansion have introduced new regulatory and operational risks for technology companies like Amazon. The current technical and operational data suggest Amazon remains well-positioned within its trading corridor, but investors should monitor for potential volatility linked to ongoing infrastructure developments and regulatory decisions.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.