However, this has not been the case recently. The stock is up about 2.5% on Thursday and is currently exercising a six-session winning streak. Amid this stretch, Amazon stock is up 20%.
This move comes before the company 20 in 1 stock splitwhich will go into effect on Monday, June 6.
Some have wondered if Amazon ‘passed its prime’ As the stock split approaches. Given the way the retail and tech giant’s stocks have performed over the past two years, that’s a fair question to ask.
For what it’s worth, the stock is almost flat in this range. Despite the strong recovery in the post-World War II period and the boom in its business, Supply chain problems and growth concerns Share price crippled.
Now with a new catalyst in the works and a renewed bid in tech stocks – for now – let’s take a look at Amazon stock before the stock split.
Amazon stock trading
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In late May, Amazon stock faltered after a rally to the 10-day moving average was met with resistance. Upon retesting the low earlier that month, the stock found its foundation and closed strong on the day.
I did this with a bullish divergence on the daily chart as well (illustrated by a blue arrow in the RSI area). This was a classic reversal, as stocks have been rising since they pulled back from the previous low.
After the stock jumped through the 10-day and 21-day moving averages. Despite this, the bulls found themselves in a difficult position with the stocks. Just how much upside could it be?
If Amazon stock continues to rise with a stock split, keep an eye on the $2,550 area. There we find the 38.2% retracement, as well as the declining 10-week moving average.
If the stock is able to push through this region in the coming days and weeks, it opens the door to the $2,700 to $2,725 region. There he will find a 50% retracement, as well as the 50 day moving average.
On the downside, I want to see the May 17 high held as support at $2,316. This is also where the rise of the 10-day moving average comes into play.
Below that, the $2,250 area is on the table, near the 50% retracement of the current high and the 21-day moving average.
Put in a nutshell? Stocks like Amazon tend to rise in events like stock splits. And given how low it is, there may be some continued upside after the split. Either way, we have the support and resistance levels shown above.
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