The post Analyst sets Amazon stock price roadmap to $240 appeared on BitcoinEthereumNews.com.

Amazon (NASDAQ: AMZN) has recently shown a significant recovery following a sharp decline between July and August 2024. Despite experiencing a notable drop from its yearly highs above $200, largely due to a broad stock market downturn at the start of August, Amazon has, in more recent trading, initiated a strong recovery. Over the past two weeks, the stock has posted its strongest performance since October 2023, marking a crucial rebound from the losses sustained in the preceding months.  This rebound is particularly noteworthy given the stock’s technical setup, which now suggests the potential for further upside, with a target price of $240. In analyzing Amazon’s recent price action, trading expert TradingShot highlights the significance of the stock’s adherence to a long-term upward channel, known as a “Channel Up,” which has persisted for over 2.5 years. Recent price movements and support levels During the recent decline, Amazon’s price briefly dipped below the 50-week moving average (1W MA50, blue trend-line) for the first time since May 2023, initially causing concern among investors.  However, the stock quickly regained this level, underscoring its importance as a key support. Additionally, the 200-week moving average (1W MA200, orange trend-line) provided further support during this downturn, preventing a deeper decline and maintaining the stock’s long-term bullish outlook. Currently, Amazon faces crucial resistance at the 50-day moving average (1D MA50, red trend-line).  Historically, breaking above this level following a low has led to substantial gains, with previous legs in this pattern yielding 79% and 69% increases, respectively. The current resistance is the final hurdle before a confirmed breakout toward the $240 target. Amazon stock technical indicators  The current “Channel Up” pattern is characterized by a series of higher lows and higher highs, indicative of a sustained bullish trend.  Sine Waves on the weekly chart clearly illustrate the…

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Filed under: News - @ August 24, 2024 12:23 pm