Watch Amazon’s price levels as shares surge after cloud growth drives earnings higher

Amazon (AMZNShares rose 6% in extended trading Thursday after the company beat Wall Street’s third-quarter profit forecasts, helped by cloud business growth and healthy e-commerce sales.

The company reported that Amazon Web Services (AWS) revenue increased 19% in the three-month period, marking the segment’s fastest growth in seven quarters. Meanwhile, online shopping revenue rose 7% from a year earlier, with the tech giant saying it expected a strong holiday quarter as delivery times improved and its range of lower-priced items expanded.

Before the jump after Thursday’s close, Amazon shares were up about 23% in 2024, slightly ahead S&P 500 Indices refund for the same period.

Below, we analyze the technical specs on Amazon’s chart and identify important post-earnings price levels to watch.

Symmetrical Triangle Breakout

Since hitting an all-time high in early July, Amazon shares have traded within symmetrical trianglegraphic pattern indicating consolidation in price before potential break outusually in the direction of the prevailing trend.

Indeed, the stock is poised for a breakout after the company’s better-than-expected quarterly report.

Let’s look at the key overhead level and a few price targets on Amazon’s chart and make an important point. support area during profit-taking periods.

Key Overhead Price Levels to Watch

The first level to watch is around the $200 area, an area that could come into play on Friday when the stock could hit overhead resistance near the stock level. all time high (ATH) And psychological round number.

Principle of target price measurement

To forecast growth potential target price above the ATH, we can use a technical tool called measuring principle. We do this by calculating the distance between the two trend lines of the symmetrical triangle at the beginning of the pattern and adding this value to the breakout point. In this case, we add $50 to $192, which projects a price target of $242.

Target price of the bars model

Investors can speculate on a long-term bullish price target by using a bar pattern, a technique that uses previous trends on a chart to predict future directional movements.

This works by taking Amazon’s trending move from October of last year to April of this year and overlaying a model of the most recent low, which projects a price target of around $273. We chose this move because it started with a profit-oriented approach. gap following the company’s similar quarterly results last year.

Important Support Area to Monitor

During periods making a profitinvestors should keep an eye on the $192 region. This area may attract buying interest near the stock’s initial breakout point, which is also closely related to two important points. peaks which formed on the chart in April and May.

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At the time of writing, the author does not own any of the above securities.