Amazon.com Inc (NASDAQ:AMZN) shares are trading higher on Tuesday. Here’s what you should know.
- Amazon stock is showing upward movement. Why are AMZN shares climbing?
What To Know: Amazon may be benefiting from reports that Nvidia Corp (NASDAQ:NVDA) is restructuring its cloud team and stepping back from competing directly with major cloud providers.
According to The Information, Nvidia CEO Jensen Huang has reorganized the company’s cloud division and is pulling back from earlier plans to build a service that would directly compete with major cloud providers like Amazon Web Services.
Nvidia launched DGX Cloud in 2023 as an AI‑focused cloud platform, but the company has since scaled back its external push and is now folding the product more tightly into its internal engineering work to support AI development on Nvidia hardware.
For Amazon, the shift removes a potential competitive threat. AWS already dominates the cloud market thanks to its enterprise relationships and huge ecosystem that presents a barrier to entry for newcomers. Nvidia’s decision to focus on its strengths rather than broad cloud market share eases pressure on AWS — and that may be giving Amazon shares a lift on Tuesday.
Technical Analysis: Amazon’s technical setup is sending mixed signals. The stock is trading above its short‑term moving averages, showing some near‑term strength, but the 20‑day SMA sitting below the 50‑day SMA hints at potential softness ahead.
Momentum indicators are equally neutral. The RSI at 49.50 shows neither overbought nor oversold conditions, suggesting traders should watch closely for a decisive move in either direction. Meanwhile, the MACD remains below its signal line, pointing to fading momentum and the possibility of increased downside pressure.
Key support is at $215.00, while resistance is set at $239.00. If the stock approaches these levels, a bounce off support could signal a continuation of the current trend, while a breach of resistance might indicate a stronger upward move.
The golden cross in July, where the 50-day SMA crossed above the 200-day SMA, indicates a potential long-term bullish trend. However, the current positioning relative to moving averages suggests that traders should remain vigilant for signs of weakness.
AMZN Price Action: Amazon.com shares were up 1.33% at $231.46 at the time of publication on Tuesday, according to Benzinga Pro.
Read Next:
Image: Shutterstock
Recent Comments