Amazon’s stocks have been performing relatively good since the start of 2019, and their price even managed to recover itself from the late-December drop. However, there is one large obstacle on the way to the price’s further growth.
Anyone looking to buy Amazon stocks should be aware of the fact that their current price sits at $1625.95, while the company’s total market cap remains just below $820 billion. The price is currently experiencing a minor correction, with a 2.58% drop in the last 24 hours. However, the correction only came after an attempt to breach the major resistance level at $1,700. This is not the first time that AMZN price attempted to do this, as there were many similar attempts in the last three months.
AMZN recovers from December drop
In late 2018, Amazon’s stock price crashed down within a week, dropping from around $1,665 to $1,345. The drop reduced the stock’s price by nearly $300, which the stockholders did not appreciate.
On the other hand, anyone who knew how to buy stocks saw this as an opportunity to purchase them at a lower price, although the window of opportunity was rather short. Before the year ended, AMZN price experienced a pretty sharp surge, making up for almost a half of lost amount within a day.
The surge started on December 24th, and it slowed down on the very next day, after breaching several resistances along the way. From there on, Amazon’s stock price continued growing more slowly, and it reached the end of the year at a $1,500 resistance.
The resistance was broken on January 1st, 2019. AMZN even attempted another surge, although it was prevented by the next big resistance level at $1,550. Before reaching this roadblock, AMZN price crashed back down to $1,500. However, this was a short-lived drop, as soon as the price reached this support, it grew once more, breaking multiple resistances along the way.
The surge finally ended after breaching $1,650, which attempted to act as a support, but it failed to prevent the price from going below in mid-January. This is where Amazon’s true struggle started, as the next growth led it to the $1.700 level, which it did not manage to breach more than once to this day.
AMZN struggles to go beyond $1,700
Since January 17th, Amazon attempted to breach this major resistance level several times, even succeeding it doing it on January 30th, when its price reached $1,720. However, this was followed by an immediate correction which took the price down past several supports.
The supports managed to slow the drop, although the price now had to struggle with breaching the resistance at $1.650. It attempted to do so throughout February, which it spent between $1,600 and $$1,650.
Finally, on the last day of February, the price managed to break through an make another attempt at reaching and exceeding $1,700 mark. While it did get in the near vicinity of the resistance, its price entered another correction on Tuesday, March 5th, and the said correction is still on-going.
Judging from the past behavior of the price, it is unlikely that it will experience another large fall, such as the one in December. It is possible that the price will continue to fluctuate between $1,600 and $1,700 and make several more attempts at breaching the resistance. It is also possible that the $1,650 support will hold, in which case the fluctuations will be smaller.