Investing in Amazon Stock for Next Week’s Prime Sale?

Amazon stock NASDAQ:AMZN

Amazon stock (NASDAQ:AMZN) has been a particularly intriguing stock this year. And it is beginning to show signs of resiliency.

Perhaps that resilience is due to the impending Christmas season. Maybe it’s because Amazon has scheduled a second Prime sales event for next week, marking the first time the company has held two Prime sales events in the same year.

Market Analysis of Amazon Stock

Amazon stock (NASDAQ:AMZN) has had a mixed bag of results. While Amazon’s e-commerce business has battled with inventory, as have other retailers, and concerns about consumer spending and inflation, the company’s cloud business has thrived. Not to mention the 20-for-1 stock split that occurred this year.

Put it all together, and we have Amazon stock (NASDAQ:AMZN) presently outperforming early in the year. It’s one of the few mega-cap tech stocks that hasn’t had its 2022 lows retested.

Only Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) escaped a retest of this year’s bottom among the four U.S. businesses with a market worth over $1 trillion.

Throughout the first quarter, Amazon stock (NASDAQ:AMZN) traded between $140 and $145. When that support zone broke, the stock dropped quickly to the low $100s, which was a big breakout region in 2020.

After that zone was held as support, it sparked a large rebound back to the previous support zone of $140 to $145.

Amazon has been caught between substantial support and present opposition since its retreat.

We had an inside week last week, in which Amazon’s entire trading range for the week was confined inside the preceding week’s range. Traders expect additional upside now that the stock is trading above last week’s high.

Despite the upward trend, the shares are in a significant area: the sliding 10-week and 21-week moving averages are approaching.

If Amazon stock (NASDAQ:AMZN) can clear these levels, it will be able to reach the 200-week moving average and the 50% retracement level at $130. Above $133.50, the $140 to $145 range is once again in play, as is the sliding 50-week moving average.

If Amazon fails to rise from here, keep a watch on the $112 to $113 range, which has served as support for the previous two weeks. Below, the crucial $100-$102 range is again in play.

Long-term investors may consider establishing a stake if we return to the latter zone.

Featured Image-  Megapixl @ Andreistanescu

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About the author: Okoro Chinedu is a freelance writer specializing in health and finance, with a keen interest in cryptocurrency and blockchain technology. He has worked in content creation and digital journalism. Since 2019, he has written on various online platforms, and his work has been recognized by several important media sources and specialists in finance and crypto. In addition to writing, Chinedu enjoys reading, playing football, posing as a medical student, and traveling.