Stock of the day: Amazon

Today’s stock of the day is Amazon, a company we last analyzed on January 15. At that time, Amazon’s price was consolidating within a flag formation, resting above a well-defined uptrend line. Back then, I anticipated a breakout to the upside, and as expected, the bullish breakout materialized. This aligns with the broader sentiment in the stock market, where optimism has fueled steady gains and pushed prices higher across the board.

Amazon’s flag formation proved to be a reliable continuation pattern. The breakout above the flag generated a strong buy signal, propelling the stock to make new long-term highs. Currently, the price is trading well above two critical support levels, solidifying the long-term bullish sentiment on Amazon.

The first key support lies at the previous highs, which were broken during the flag breakout. This level, marked in yellow, now serves as a reliable floor for any short-term pullbacks. The second support is the green uptrend line, which has been guiding Amazon’s steady climb higher. As long as the price remains above this uptrend line, the long-term sentiment for Amazon stays positive.

For traders and investors, the current situation is straightforward. As long as Amazon maintains its position above these two supports, the outlook remains bullish. A break below the green uptrend line could signal a shift in sentiment, but for now, the momentum is firmly in favor of the bulls.