Amazon's Stock Is Defying Gravity With Its Fourth Bold Rally Towards $190 Following an 8400% Rally Since 2008

• 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.

Amazon.com Inc's AMZN share price is a good example of a stock displaying resilience. As the company nears its upcoming earnings report, the stock is making its fourth attempt to break through a historically tough resistance level.

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%.

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