Amazon tests support near 50-day moving average

For investors, Amazon is more than a mega-cap consumer and cloud company. It is one of the market’s cleanest ways to express the capital-spending cycle tied to artificial intelligence, digital infrastructure and enterprise cloud demand. When Amazon holds support, it reinforces the broader risk-on case for growth stocks. When it fails, it often reads as a warning that investors are becoming more selective on valuations and future capex payoffs.

The stock’s recent price action shows both the opportunity and the risk. Amazon had surged as high as $284.02 in early August, then slipped back as the 50-day average flattened and momentum cooled. Its relative strength index was 40.0 on Friday, down from overbought levels earlier in the year, while the MACD remained below its signal line, suggesting the trend has not fully reset. In plain terms, the chart is no longer stretched, but it is not yet fully repaired.

That matters because Amazon is part of the same leadership cohort driving the Nasdaq and, by extension, the S&P 500. The QQQ and SPY both remain near highs, and sentiment across the broader market has turned more aggressive, according to Adalytica.com’s S&P 500 Trade Signals, which showed greed at 76 and a sharp 7-day improvement. But the next leg higher in megacap tech will depend on whether the market keeps rewarding companies that can turn AI infrastructure spending into durable earnings growth.

Amazon’s appeal is that it sits on both sides of that trade. Its cloud business gives it exposure to AI compute demand, while its retail and logistics network provides operating leverage if the consumer backdrop stays firm. That dual engine is why traders keep coming back to the stock after pullbacks: the market does not need a perfect macro environment, only enough confidence that Amazon’s scale can keep translating investment into cash flow.

The nearby setup makes the next move especially important. A convincing push back above the 50-day moving average could reopen the path toward the summer highs and restore Amazon’s leadership status. Failure to reclaim that line would leave the stock vulnerable to a deeper test of support and could cool appetite for high-multiple AI beneficiaries more broadly.

For investors, the message is straightforward: Amazon remains one of the most asymmetric large-cap ways to own the AI and cloud buildout, but the entry point still matters. If the stock can reclaim and hold its moving-average support, the next breakout could be tradable. If not, patience may pay better than chasing strength.