Amazon.com Inc. (NASDAQ:AMZN) shares are trading higher Friday, as it trends on multiple social media platforms; at one point, it was the top trending stock on Reddit’s WallStreetBets.
Amazon was up 2.39% at $3378.34 at publication time.
See Also: Is Amazon A Long-Term Story Facing Short-Term Headwinds?
Amazon Daily Chart Analysis
- Shares look to be heading toward resistance in what technical traders call an ascending triangle pattern.
- The $3,500 price level has held as resistance in the past and may continue to in the future. The higher low trendline is somewhere the stock has always been able to find support and may again in the future.
- The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely seeing a period of bullish sentiment.
- Each of these moving averages may hold as an area of support in the future.
- The Relative Strength Index (RSI) has been climbing the past few days and sits at 55. This push higher saw more buyers entering the stock, and now the buying pressure outweighs the selling pressure.
What’s Next For Amazon?
Bullish traders are looking to see the stock continue to push higher in the triangle pattern and break above resistance. After a break of resistance, bulls would like to see the stock be able to consolidate above the resistance level for a possible further bullish push.
Bearish traders are looking to see the stock start to dip and fall back to the higher low trendline. A break below this trendline could cause the stock to see a long-term trend change and a strong bearish push.
