AMZN tilts bullish, but it's a struggle

We highlighted Amazon (AMZN) as a bullish chart setup in our Sep 9 The Stock Pulse.

AMZN: Bullish Cup and Handle Faces a Test

AMZN continues to trade within a potential cup and handle pattern dating back to January, keeping the broader setup bullish. However, the stock has yet to confirm the pattern with an upside breakout above the 236.50–242.50 resistance zone.

The focus now turns to key support at 215–209, defined by the 26- and 40-week moving averages (215–213), the early August higher low (211), and the 38.2% retracement level (209). We view this zone as tactical risk management support.

Holding above 215–209 would preserve the bullish setup and keep potential open for a breakout from the cup and handle to target 310. A decisive move below 209, however, would warn of a deeper correction toward 200 (50% retracement) and 190 (61.8% retracement).

AMZN has challenges relative to the S&P 500. The stock is below its 13-, 26-, and 40-week moving averages, which provides an overhang, and there remains the risk of a stubborn relative price head and shoulders top. These relative patterns need to change for the better in our view. Until then, AMZN lacks leadership.

Bottom line: The bullish setup remains intact above 215–209, but a break below that zone would meaningfully weaken AMZN’s technical outlook.

Chart 1: Amazon (AMZN)