Amazon stock’s technical setup indicates further upside: BofA

Investing.com — Amazon (NASDAQ:), the online retail giant, is displaying a positive technical setup that favors a rise into the 290s, according to a breakout from a large base that was built from 2021 to 2024, according to Bank of America’s technical strategists.

In addition to the breakout, a bullish flag pattern was observed from December 2024 to January 2025, which further supports this positive technical setup. The pattern is a common indicator used by traders to predict potential future upward price movements.

Key support levels for Amazon’s stock are identified at 215 and between 201 and 195. These support levels are further reinforced by the rising 13-, 26-, and 40-week moving averages (MAs) at 217, 199, and 194, respectively.

In the world of technical analysis, moving averages are used to smooth out price trends by filtering out the “noise” from random short-term price fluctuations. The 13-, 26-, and 40-week MAs are frequently used metrics that provide a glimpse into longer-term trends of a stock’s movement.

In Amazon’s case, these rising MAs indicate a potential for further upward movement in the stock’s price, backing up the support levels and corroborating the positive technical setup.

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