Amazon Stock Eyes Breakout before the report of the first quarter News ad

Amazon.com Inc. NASDAQ: Amzn It may still decrease by 25% of its record maximum in February, but the shares quietly show signs of life.

After closing a little less than 180 dollars on Tuesday, the shares now about 10% From a minimum last week with a trade scheme, which suggests that the worst from the sale can be in the rear view mirror.

With profit next week, there is a growing meaning that Amazon can create a strong step above. It is expected that the company will deliver another blow, continuing its long track record of advanced Wall Street forecasts. For investors aside, this can be one of the best settings that we have seen in the last quarters.

These are the three reasons why Amazon begins to look convincing again.

1. Strong income.

One of the biggest reasons to love Amazon, ahead of the income, is how it supplies sequentially.

Over the past year, Tech Titan has published Beat After Beat, ahead of expectations by income, income and fields. His last report in February noted him The most profitable quarter in the recordAnd analysts widely expect that this impulse will be transferred to numbers next week.

Amazon won from a number of key winds. Amazon Web Services (AWS) stabilizes, advertising revenues continue to grow, and the company demonstrated a clear discipline in cost control. This mixture of the strength of the highest line and the effectiveness of the line helped restore the confidence of investors after the shaky 2022 and the beginning of 2023.

Going to this cycle of income, expectations remain high, but unrealistic. The shares have already been sharply fixed, which means that the bar for the reaction is “better than fearing” may not be particularly high. And if Amazon can deliver another solid quarter, recent minimums can easily be a turning point.

2. The feeling of bull analyst is construction

Wall -stroke did not lose faith in the Amazon. In fact, recent analysts updates suggest that confidence can grow.

Only this week teams from da Davidson, Cityuper and Morgan Stanley repeated their purchase ratings on stocks. Morgan Stanley update, in particular, was allocated with a target price of $ 245, which implies Almost 40% growth By closing on Tuesday.

These analysts rely on the fact that the long-term Amazon engines are still firmly acted. This includes AWS, his dominant position in global e -commerce and growing leadership in digital advertising. Even in a hard macro environment, the company continues to pull the correct operating levers, and the street turns to an appeal.

Which is also noteworthy is that these bull calls come After 25% rollbackIn other words, the analysts rely, and do not recede when the moods remain careful. Often this is a signal that institutional money can be prepared for a return.

3. Technical installation offers a rebound

While the recent rollback was cool, the Amazon diagram begins to stabilize. The trading range has significantly tightened over the past few sessions, and now the shares have collected several higher closures. This is a sign that bulls can restore control.

RSI, which fell to 27 earlier this month, continued to rise to neutral territory. This shift from resold conditions suggests that the pressure of sales begins to facilitate. With a more stable base formed from 170 to 180 dollars, the potential for Preliminary earnings bounced Grows.

If the pulse continues to build, return to 190-200 dollars It does not raise a question before the report next week. Add to the comments on bull analysts and the history of Amazon’s income, and the technical installation becomes even more convincing.

Bull setting is too good to ignore

Amazon shares can still be in good maximums, but the installation of income next week looks more and more optimistic.

Promotions are restored from deeply resold levels, Wall Schell confirms his support, and the expectations of another strong report is.

For investors who seek to get a position on the eve of a possible run of preliminary payment, this may be one of the best entry points for several months. If Amazon delivers, as expected, and the story suggests that it will be, actions can quickly return to the top of their recent range.

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