The shipping giant Amazon is doing really well right now. After the purchase of One Medical, the quarterly figures in particular were well received by investors a week and a half ago. The planned purchase of iRobot is now also causing fantasies. The share has been doing well recently, but is now facing the next technical chart challenge.
After the Amazon share had been consolidating in a broad range between 102 and 130 dollars since mid-May, the breakout to the upside finally succeeded. As a result of the strong news flow, it opened a gap between 122.84 and 132.41 dollars at the end of July and thus catapulted itself above the sideways range. With a relatively high volume, it climbed above the horizontal at $138 shortly thereafter, triggering another buy signal.
But now the title faces a major challenge. Just above the current price level, there is an enormous resistance zone between 144 and 150 dollars, which is based on multiple intermediate lows and the 200-day moving average. Although it is unlikely that the stock will break through this zone in one go, the chances of a breakthrough are good. The uptrend strength (ADX indicator) continues to climb higher, suggesting a sustained uptrend.