Amazon (AMZN) shares have hit record highs recently, boosted by optimism about the growth of the company’s cloud business.

The company reported better-than-expected quarterly results last week. Investors were particularly impressed by the growing Amazon Web Services (AWS) business income at its fastest pace in seven quarters and continues to invest significantly in artificial intelligence (AI) amid increasing demand.

Amazon shares fell slightly on Friday after closing at an all-time high in the previous session. The stock, which trades at about $208, ended the week up 5.2 percent, outpacing the S&P 500’s 4.7 percent gain.

Below, we break down Amazon’s chart and usage technical analysis to identify important price levels worth paying attention to.

Symmetrical triangular eruption

Since the peak in July, Amazon shares have traded within four months symmetrical triangle before bursting above print at the end of October. In a win for the bulls, the buying momentum continued into early November, with gains accelerating this week above average. volumeindicating a continuation of the long-term uptrend of the stock.

While relative resistance index (RSI) confirms strong price momentum with a reading near 70 also increases the chances of short-term dips as investors lock in profits after the last stock run.

Let’s design a diagram target price to watch if Amazon’s move above continues and find more keys support levels to monitor during periods of weakness.

Optimistic price target based on charts

Investors can project an upside price target based on charts using a bar pattern, a technique that analyzes past history TRENDS to predict future movements.

We can apply this to Amazon’s chart by extracting the stock’s trend higher from October last year to July this year and repositioning that move from the early August low. Technicals forecast a target of around $250, which is about 20% above Friday’s closing price.

If such a move were to occur, it would complete a staple The Elliot Wave pattern with five distinct unfolding growths, which I’ve numbered in the chart above.

Key support levels to watch

At an initial withdrawalinvestors should watch the $200 level. This area on the chart would likely attract support around psychological round number and the july swing up.

Finally, a deeper one withdrawal could see Amazon shares review lower support near $188, a location where investors could look entry points next to a trend line connecting several HEIGHTS on the chart from July 2021 to September this year.

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At the time of writing, the author does not own any of the above securities.