Shares of Amazon (AMZN - Get Report) have been quietly surging higher, hitting the stock's highest levels since the fourth quarter and topping $2,000 on Wednesday. Shares are up 1.8% in Wednesday's session to $2,023.
With its all-time high sitting up at $2,050.50, investors are clamoring for new highs in the e-commerce and cloud-computing juggernaut.
Can it get there? The Federal Reserve says it will be flexible and accommodative, which is increasing investors' confidence that a rate hike is coming this month. That bodes well for tech stocks, which thrive in low interest rate environments.
If the Nasdaq is soaring, it's likely Amazon will do well, too. However, this relationship is generally a two-way street. For the Nasdaq to jump, it needs its largest components -- Facebook (FB - Get Report) , Amazon, Netflix (NFLX - Get Report) , Alphabet (GOOGL - Get Report) (GOOG - Get Report) , Apple (AAPL - Get Report) and Microsoft (MSFT - Get Report) -- to rise, too.
Not all of FAANG+M are trading near their highs, but Amazon is among those that are. Can it keep up the momentum or are shares about to peter out ahead of Prime Day, which begins July 15?
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Trading Amazon Stock
Amazon stock has posted a robust rebound from its June lows, where shares bottomed out near $1,672. It quickly rocketed through the 200-day moving average and within a few trading sessions, pushed through the 20-day and 50-day moving averages as well.
It may not be the best performing FAANG stock of 2019 -- that honor belongs to Facebook -- but it is the closest one of the bunch to its all-time high. It's worth mentioning that Microsoft hit new highs on Wednesday before pulling back.
The recent price action has investors wondering if AMZN stock can be the next to make new highs. With a little more "oomph," it can get there. The question is, will it?
According to the relative strength index (RSI) at the top of the chart (blue circle), Amazon stock is not yet overbought. However, it is coming into potential channel resistance (blue line), as well as its prior highs near $2,033 and $2050, respectively.
A push up to this area could be met with sellers. The exception would be if the Nasdaq began surging higher, putting a bid beneath Amazon stock and giving investors the confidence to push it through to new highs.
Should sellers step up -- either near channel resistance or the prior highs -- it would be extremely productive to see prior resistance at $1,950 hold as support, as well as the 20-day moving average just below at $1,918 and trending higher.