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Can Amazon Stock Hit $4,000 Before Year-End 2021?

Amazon stock is finally looking like it's breaking out. Can it hit $4,000 by year-end?

Amazon  (AMZN) - Get Amazon.com, Inc. Report shares have been charging higher lately, up almost 2% on Friday.

The stock is working on its third straight daily gain and its fifth gain in the last six sessions. Its one decline during that stretch was a loss of just 0.14%.

Many investors have been waiting months — no, quarters — for Amazon to breakout.

It didn’t matter that it had strong earnings, good news and a surging Nasdaq and S&P 500.

Ironically, its last two quarterly reports weren't that great and the last one was a rare top- and bottom-line miss

However, shares bottomed in the first post-earnings session and Amazon stock hasn’t looked back.

Despite the massive IPO from Rivian  (RIVN) - Get RIVIAN AUTOMOTIVE, INC. Report on Nov. 10, Amazon really struggled with a breakout over the $3,550 level. 

That's as it has a stake in Rivian, by the way. 

Up over 6.5% so far this week though and bulls are looking for a potential year-end rally in Amazon.

Earlier this week, analysts at Goldman Sachs named Amazon their top internet stock for 2022.

Nearing new all-time high territory now, let’s look at the charts.

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Daily chart of Amazon stock.

Daily chart of Amazon stock.

Earlier this morning I looked at Apple  (AAPL) - Get Apple Inc. (AAPL) Report, arguing that this stock and Amazon are both likely to be buy-the-dip candidates going forward.

It helps that Wedbush analysts laid down a pretty bullish outlook on the Nasdaq (even though they favored Apple as their top FAANG holding).

Above is a daily chart, highlighting how many times Amazon flirted with a breakout over the $3,550 area.

Earlier in the week I tweeted that one day investors would look up and the “train will have left the station.” Is that happening now?

Bulls hope so, as they fix their attention on the $3,773 high from July. Not only is that the third-quarter high, but it’s also the all-time high.

A breakout over this level could open the door to the 161.8% extension near $3,975, followed by a possible push over $4,000.

Weekly chart of Amazon stock.

Weekly chart of Amazon stock.

Above $4,000 could put an additional push to the $4,125 to $4,150 area in play if we measure an extension from the more recent third-quarter range. That’s shown on the weekly chart above.

There is a risk here, too.

While Amazon stock looks pretty good right now — especially heading into Black Friday and Cyber Monday — there is a risk that we get some type of reversal or failure near the current $3,775 highs.

After all, the stock looked pretty good in July too, before it ultimately rolled back over. Stay on guard for that type of rug pull, which could put the $3,550 to $3,600 area back in play.

However, the weekly chart emphasizes how patience has been rewarded in this stock. Shares tend to go on long consolidation phases before eventually roaring higher.