Amazon’s share price has seen a solid recovery after falling towards the 1,760 level earlier this week, marking the stock’s lowest trading level since mid-December 2019.
Amazon stock technical analysis shows that a large ascending triangle pattern still remains in play across the higher time frames and could propel the online giant’s share price to a fresh all-time high.
Amazon US medium-term price trend
Investors turned heavily bearish towards US stocks earlier this week, with Amazon’s share price briefling dipping towards the 1,760 level.
Amazon stock analysis shows that the recent drop has failed to invalidate a large ascending triangle pattern on the daily time frame.
Ascending triangle patterns are typically considered to be bullish patterns. With this in mind, the size of the pattern implies that the price could reach the 2,700 level if an upside breakout occurs.
The daily time frame is showing that the neckline of the pattern is located around the 2,000 level, while the bottom of the triangle pattern is found at the 1,830 level.
Watch out for a potentially explosive directional move once the stock starts to break out from the 1,830 to 2,000 price range.
Amazon short-term price trend
Amazon stock technical analysis shows that the short-term trend is only bullish while the price trades above the 1,860 level.
Short-term analysis is aligning with medium-term analysis, and highlights that a bullish reversal pattern is also present on the lower time frames.
The one-hour time frame shows that an inverted head-and-shoulders pattern has formed, with the upside potential of the pattern around 300 points.
A breakout above the 2,035 level would trigger the bullish pattern into action and lead to a possible rally towards the 2,335 level.
It is also noteworthy that the bullish pattern remains valid while price trades above the 1,700 level.
Amazon US technical summary
Amazon stock analysis points to a continued recovery ahead if bulls can anchor the price above the 2,000 to 2,035 technical area. The 2,335 and 2,700 levels are the major bullish targets.