Amazon (AMZN) shares rose 6% in extended trading Thursday after the company beat Wall Street’s third-quarter profit estimates, boosted by growth of its cloud business and healthy e-commerce sales.

The company said Amazon Web Services (AWS) revenue grew 19% over a three-month period, representing the segment’s fastest growth in seven quarters. At the same time, online store revenue rose 7% from a year earlier, with the tech giant saying it expects a strong holiday quarter amid improving delivery times and a wider range of items at a lower cost.

Before Thursday’s jump, Amazon shares had gained about 23% in 2024, slightly exceeding the S&P 500 Indices return to the same period.

Below, we analyze technical data from Amazon’s chart and identify important price levels after earnings that are worth watching.

Cutting a symmetrical triangle

Since hitting its all-time high in early July, Amazon shares have traded in a range symmetrical trianglea chart pattern that indicates a consolidation in price before a potential burstgenerally in the direction of the dominant trend.

Indeed, the stock is on the verge of a bullish breakout following the company’s better-than-expected quarterly report.

Let’s look at a key overhead level and several chart-based price targets on Amazon’s chart, while also highlighting one important element. support zone during profit-taking periods.

Key General Price Levels to Watch

The first level to watch is around $200, an area that could come into play on Friday where shares could face resistance near the stock level. absolute record (ATH) And psychological round number.

Measuring principle price target

To predict an increase price target above the ATH we can use a technical tool called the measuring principle. To do this, we calculate the distance between the two trend lines of the symmetrical triangle near the start of the pattern and add this amount to the breakout point. In this case, we add $50 to $192, which predicts a target of $242.

Bar Pattern Price Target

Investors can speculate on a longer-term bullish price target by applying a bar pattern, a technique that uses trends on the chart to predict future directional movements.

It works by taking Amazon’s trend from October of last year to April of this year and overlaying the trend of the most recent low, which forecasts a target of around $273. We chose this decision because it was based on a profit-driven approach. gap following the company’s equivalent quarterly results last year.

Important support area to watch

During periods of profit takinginvestors should keep an eye on the $192 region. This area could attract buying interest near the stock’s initial breakout point, which also closely aligns with two important peaks which formed on the map in April and May.

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