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Technical Analysis of Google and Amazon stocks

Are shares of Google at its ATH and can we expect Amazon shares to grow soon? Today, we will look at the shares of two technology giants and inspect both their current and future state.


Google has been “on fire” in the last few weeks, and since the COVID drop in March 2020, its shares have gained over 186% . When we look at the trend of recent weeks and months, Google still holds the main trend line. Around which the price movement repeats in the same cycles. A similar scenario can be seen on SP500. And it is also the main trend line from which price often bounces off, followed by a steep growth. However, as soon as the price gets too high, the growth suddenly stops and a short ABC correction, or a sideways move, takes place. And it is precisely these movements that bring the price back to the main trend line from where the whole cycle repeats again.

In this case, trading is very simple. Either hold the share or buy every time the price touches the trend line. As long as we keep the trend, Google’s stock will grow. In the end, of course, there will be a stronger downward movement, so do not forget the stop-loss, which I would always put under the current LOW.

Google shares Figure 1: Technical analysis of Google shares


Amazon shares were one of the very first to reach a whole new high after the COVID slump. But afterward, it was not all sunshine and rainbows either. Currently, the price continues in a certain bearish channel which should indicate a decline. Be that as it may, if I look at the current economic indicators from a bigger perspective I would say that what we have here is a pre-growth consolidation.

The Fed is still pushing money into the economy on a large scale, and stocks and indices are rising. So Amazon should not be an exception, and if nothing fundamental changes, price should break this channel upwards. However, this may take some time. A definitive confirmation will arrive once the price hits a new maximum and gets above the trend.

Amazon shares Figure 2: Technical analysis of Amazon shares

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...


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