Amazon Stock Jumps 4.29% To 235.68 As Technicals Signal Bullish Momentum

Amazon.com (AMZN) shares rose 4.29% to $235.68 in the most recent session, marking two consecutive days of gains totaling 4.59%. This strength occurs near the upper boundary of the stock's 52-week range, warranting a multi-indicator technical assessment.
Candlestick Theory
Recent candlesticks show a bullish reversal pattern. The September 2nd session printed a hammer candlestick (low: $221.83, close: $225.34) after a downtrend, followed by two white candles with rising closes. The current price approaches significant resistance at the July 31st peak of $236.53, while support emerges at the September 4th low of $230.78, reinforced by the August 21st swing low of $220.50.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment, with the current price ($235.68) trading above all three key averages. This configuration signals a sustained uptrend. Notably, the 50-day MA has remained above the 200-day MA since early 2025, confirming long-term bullish momentum. Any pullback toward the 50-day MA ($225-$228) may present a buying opportunity.
MACD & KDJ Indicators
MACD shows a bullish crossover, with the signal line trending upward and the histogram expanding—a confirmation of positive momentum. The KDJ oscillator aligns with this view, as the %K (87) and %D (82) lines remain in overbought territory but without bearish divergence. This suggests strong short-term momentum, though the elevated KDJ readings indicate potential consolidation.
Bollinger Bands
Price action has tested the upper Bollinger Band ($234-$236), coinciding with the multi-month resistance zone. Bandwidth expansion during the 4.29% surge indicates increasing volatility. While the breach of the upper band demonstrates strength, a reversion toward the 20-day moving average midline ($228-$230) appears plausible if follow-through buying wanes.
Volume-Price Relationship
The 59.2 million shares traded on September 4th marked a 103% increase from the prior session and exceeded the 30-day average volume. This high-volume breakout validates the price surge. However, the preceding down day (September 2nd) also saw above-average volume (38.8 million), indicating residual selling pressure that warrants monitoring.
Relative Strength Index (RSI)
The 14-day RSI (76) has entered overbought territory, a condition not observed since July 2025. While this does not inherently signal reversal, it suggests limited near-term upside without consolidation. Traders should note that during strong trends, RSI can remain elevated for extended periods, reducing its reliability as a standalone reversal indicator.
Fibonacci Retracement
Applying Fibonacci levels to the rally from the August 1st low ($214.75) to the September 4th high ($235.77) reveals critical thresholds. The 23.6% retracement ($230.82) aligns with September 4th's intraday low, establishing immediate support. Deeper support rests at the 38.2% level ($227.75), closely matching the August 28th high. Resistance remains at the 78.6% extension level, projected near $241.50.
Confluence and Divergence Observations
Confluence is observed at the $230.80 zone (Fibonacci 23.6%, recent swing low, and Bollinger midline), strengthening its support significance. The RSI overbought signal diverges from MACD's bullish momentum reading, creating ambiguity. Volume confirmation of the breakout and alignment of moving averages support continued upside bias, but RSI cautions against chasing immediate gains. A consolidation phase between $230.82 support and $236.53 resistance appears probable before the next directional catalyst.