You Ask, We Analyze: The Bull And Bear Case For Amazon As Stock Surges Higher

On Sunday evening, Benzinga asked its followers on Twitter what they’re buying at the open on Monday. From the replies Benzinga selected one ticker for technical analysis.

jefferson ceneus (@CeneusFenojee) is thinking of buying Amazon.com, Inc AMZN.

The e-commerce giant announced on Monday it will begin a price match program in the U.K. Amazon Prime members who use Amazon Fresh to purchase their groceries will be able to buy hundreds of products at the same prices offered to Tesco’s Clubcard members.

The move comes amid rising inflation, which has caused the cost of everyday necessities to soar.

The economic crisis has also caused big tech companies to scale back expansion plans in order to reduce spending. Amazon has decided to trim the amount of space it planned to lease at JPMorgan Chase's offices in the Hudson Yards neighborhood of Manhattan.

Amazon stock has been defying economic woes recently, as have the general markets, and on Monday Amazon was opening higher in tandem with the S&P 500 before slamming into a resistance level near the $115 mark.

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The Amazon Chart: On Friday, Amazon broke up bullishly from an inside bar pattern and a symmetrical triangle pattern, which Benzinga pointed out as a possibility the day prior The move caused Amazon to regain three important moving averages as support: the eight-day and 21-day exponential moving averages and the 50-day simple moving average, which may give bullish traders more confidence going forward.

• Unfortunately, while Amazon opened higher, the stock didn’t receive bullish momentum to drive it up over the $115 level, which caused Amazon to print what may confirm as a lower high.
• If Amazon is unable to rise up above the most recent lower high, which was printed on July 7 at $116.99, another tightening range may occur.
• Amazon has a gap above on its chart between $130.76 and $135.78. Gaps on charts fill about 90% of the time, which makes it likely the stock will rise up to fill the empty trading range at some point in the future, although it could be an extended amount of time before that occurs. If Amazon does surge up to fill the gap, it would represent a 17% increase in share price. 
• If Amazon closes the trading session with a long upper wick, the stock will print a shooting star candlestick, which could indicate lower prices will come on Tuesday. If the stock closes the trading day near its high-of-day price, Amazon will print a bullish Marubozu candlestick, which could indicate higher prices are in the cards.
• Amazon has resistance above at $117.16 and $122.24 and support below at $109.30 and $99.88.