Amazon (AMZN) is firming up

We have some interest in Amazon (AMZN).

We recently highlighted AMZN in Straight from Chart on December 3 and compared its chart pattern to that of Walmart (WMT). We suggested that if AMZN can continue to hold its zone of rising WMAs, its setup would resemble WMT’s choppy bullish turn higher out of its cup and handle pattern. In our view, this bullish shift appears to be happening for AMZN entering 2026.

Amazon (AMZN) broke out from a bullish January–October cup and handle formation that projects further upside toward 310, but the 242.50–236.50 breakout zone failed to hold in November, prompting a pullback into key support levels. The rising 26- and 40-WMAs have contained dips so far and continue to underpin AMZN's price trend in the 228 to 219 area, which is above key risk-management support at 211 (August and October lows). If the stock can mirror WMT’s recent rebound by reclaiming the 236.50-242.50 zone and then surpassing the early-November peak at 258.60, its uptrend would refresh, re-targeting the cup and handle pattern count at 310 as well as a 100% extension level at 322.

AMZN has struggled vs. the S&P 500 and needs to break out above resistance to refresh its leadership trend.

Chart 1: Amazon (AMZN) (top) and relative to the S&P 500 (bottom)