Amazon shares have rallied more than 120% higher since the lows of the pandemic in 2020. Since then, the retail giant’s share price has traded in a tight range.

News of a coordinated global tax tech caused some weakness but the shares have remained surprisingly resilient. But, perhaps, it is not that surprising to some.

In its latest earnings call, the company announced net sales have surged 44% to $108.5 billion while net income has also surged higher.

Investors point to even more growth in Amazon Prime, Amazon Studios and Amazon Web Services (AWS) – the latter accounting for a third of the global cloud computing market.

What do the charts tell us?

Source: Admirals MetaTrader 5, #AMZN, Monthly – Data range: from Sep 1, 2013, to Jun 10, 2021, performed on Jun 10, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

The monthly chart of Amazon’s share price shown above demonstrates a clear long-term trend higher and the consolidation of the price since October last year.

However, the 20-period (blue) exponential moving average and 50-period (red) exponential moving average are still moving higher, confirming an uptrend.

Source: Admirals MetaTrader 5, #AMZN, Weekly – Data range: from Aug 18, 2019, to Jun 10, 2021, performed on Jun 10, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

The most interesting chart from a technical analysis perspective is the weekly chart of Amazon’s share price shown above. The price has broken through a previous descending resistance line shown by the black line.

Interestingly, the price has now retested the same level – something technical analysts call resistance turning into support.

If the price can stay supported then it could represent a near 11% move higher back to the all-time high.

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