Is Amazon AMZN ready for a channel breakout? Technical Analysis

The company founded by Jeff Bezos will report earnings on July 27, thus a potential catalyst for momentum and gaps would be just more than two weeks away.

Meanwhile price action suggest that multiple times AMZN could not close above 130$ in recent weeks and now prices reduced momentum after an impressing rally of almost 63% from January lows.

The framework is bullish because AMZN is trading above the most relevant moving averages and also the bullish channel is still valid. A breakout of the higher side would lead likely for another bullish leg: shares are 49% away from the all time high made on summer 2021 at 188.65.

If buyers will be in control the most relevant test after the breakout would be area 150; this level is the 61.8% Fibonacci retracement of the downtrend that lasted one year and half almost that bottomed last January at 81.83.

If the 61.8% resistance will be won then its record high would be the next key level.

If selling forces would prevail in the short term then as long that AMZN would trade respecting the lower side of channel the long term bullish framework cannot be excluded. Beneath the lower side bearish forces would be in control likely to test area 100 and then again the 2023 low at 81.

AMZN closed yesterday at 128.78