Benzinga - by Zaheer Anwari, Benzinga Contributor.
- Amazon's stock is trying for the fourth time to break through $190.
- Since 2008, Amazon's stock price soared by 8400%, peaking in July 2021.
The journey of Amazon's stock price has been interesting, rising 8400% from the lows of 2008 to the highs of July 2021. At that peak, the stock hit around $190, establishing a resistance level that has since become a significant battleground for investors.
This impressive surge reflected the robust growth and expansive reach the company achieved during that period.
However, after this rapid rise, the stock experienced a significant correction. In the stock market, large gains often lead to buying exhaustion.
Investors begin to see the stock as overbought and expect a downturn, triggering a market correction. This is what happened with Amazon's stock, which dropped by 56%, finding support around $80 by January 2023.
Since hitting this low, the stock has rallied impressively, recovering by 128%. It's now back to testing the $190 resistance level again.
Previous attempts to break through this barrier in April, May 2024, and early June were unsuccessful, with the stock dropping 12%, 9%, and 3%, respectively, after each attempt.
Interestingly, the decreasing size of these pullbacks may indicate growing persistence among buyers, suggesting a potential buildup of momentum that could eventually push the stock past this resistance.
As investors monitor the situation, another crucial factor is the psychological $200 level. This represents a strong resistance, potentially challenging Amazon's stock even if it surpasses $190.
Despite these near-term obstacles, Amazon's long-term outlook remains positive, thanks to its strong market position and ongoing innovation.
After the closing bell on Tuesday, June 25, the stock closed at $186.34, trading up by 0.37%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.
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