Amazon at record high - a short-term buy -- medium-term toppy?

Company description

An important segment of Amazon is online commerce, where Amazon serves as a platform for buying and selling a wide range of products. In addition to selling goods under its own name, Amazon also offers other retailers the opportunity to sell their products through the Amazon platform.
Another important business area is the area of cloud computing services under the name Amazon Web Services (AWS), which offers a variety of services such as computing power, database storage and content delivery networks. AWS is considered a leading provider in the cloud sector and serves an extensive customer base that includes start-ups as well as large companies and public institutions.

Amazon is also active in the streaming sector with Amazon Prime Video and acts as a producer and provider of film and series content. Amazon also develops and produces its own consumer electronics, known for the Kindle e-book reader, the Alexa voice assistant and the Echo series smart speakers. This sector is referred to as consumer electronics.
In addition, Amazon operates physical retail stores such as bookstores and the grocery retailer Whole Foods Market. The company is also expanding into the digital payment services space, offering an e-commerce payment solution with Amazon Pay.

Short-term chart outlook

The short-term chart technical outlook also encourages you to buy Amazon shares. Yesterday, bullish market participants managed to break out dynamically to a new record high! The share price also overcomes the intermediate hurdle of 191.50 USD. This represents a new buy signal. The upper price mark of 208 USD would be the technical target zone. The potential is certainly profitable to trade with around 7.5% on the upside.

Medium-term chart outlook

However, the price level of USD 208 is also an important medium-term target for Amazon. It is quite conceivable that this price range could lead to a more significant correction. In particular, indicators such as RSI and MACD are already showing massive divergences. They do not confirm Amazon's new-found strength in the medium term. If the price zone of around USD 208 is actually used by the sellers, we are talking about a correction potential of almost 30%. To generate initial signs of this, a first bearish step would be to break through the support level of USD 168. This should inevitably lead to the first important correction level of USD 145.

In addition to the blog that is actively maintained here, my information portal Investment.Traders contains other exciting articles, detailed stock analyses, presentations of various investment opportunities and a weekly update in video form. This is my contribution to financial education in Germany.