For Amazon’s part, the stock is hitting all-time highs on the day after rallying nearly 4%. That came after shares climbed 2.25% on Friday and closed near the session highs.
While Apple is not yet hitting record highs, the stock continues to push higher. With both stocks doing well, it seems to be propping up the market as the indices lean lower.
Wall Street doesn’t seem to care that Jeff Bezos is stepping down and handing over the reins to Andy Jassy.
This stock has been consolidating for almost a year now and bulls are anxious to see new highs. They achieved that vision on Tuesday but are wondering if there are more gains to come.
On the weekly chart above, notice how long we’ve had sideways price action in Amazon for.
Each time the stock tried to break out - in January and April of this year, specifically - the breakout failed. This time is different though.
Amazon stock ended last week at its highs and gave us an inside week, with its trading range completely within the range of the prior week.
Then on Tuesday, bulls got a gap-up open near the all-time high, which quickly became the prior all-time high as the stock pushed higher. Now it’s got investors wondering what could be next.
We already know earnings season will start in a few weeks. This could act as a catalyst ahead of the event if bulls decide to bid this name higher into the print.
From here, I would love to see the $3,500 to $3,550 area hold up as support. This has been resistance for almost a year now and it would be bullish to see it buoy the stock price.
On the upside, bulls likely have their attention on the $3,750 area, followed by the $3,950 to $4,000 area. Not only is the latter a nice round number to target, but it comes into play near the 161.8% extension.