Amazon.com (AMZN - Get Report) is in rally mode right now. Shares are up more than 51% year-to-date, consistently breaking out above any price levels that put up any semblance of resistance. So now, the question is whether shares can still push through higher ground in the $260s. Investors can take a breather -- the technicals look promising.
Amazon is forming a very short-term ascending triangle pattern right now, essentially a smaller version of the setup that AMZN broke out of at the end of July. The ascending triangle is a price pattern that's formed by a horizontal resistance level to the upside and uptrending support below shares. As AMZN bounces in between those two technically significant prices, it's constantly getting squeezed closer and closer to a breakout above that resistance level, in this case at $262.
When that breakout happens, we've got a high-probability buy signal that Amazon is going to continue to make new highs. So far this summer, it's been clear that buyers have full control in this stock. A push above $262 means that the small glut of supply of shares at that level has been absorbed by increasingly eager buyers.
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