Amazon tops $3 trillion market cap as stock continues post-earnings surge
Amazon (AMZN) shares continued their post-earnings rally, surpassing a $3 trillion market capitalization and hitting an all-time high on Monday.
With the strong positive catalyst of Amazon breaking through a $3 trillion market capitalization and reaching an all-time high, the current stock price has broken above the 20-day resistance line ($258.08). Therefore, I would consider entry while keeping in mind the possibility of a short-term pullback due to the distance from the support level ($226.16).
Since the price has broken above the 20-day resistance level ($258.08), we will maintain a response strategy that allows for the possibility of a short-term correction due to the divergence from the support level ($226.16). We will take profit when the stock price reaches the resistance level of $258.08, and cut losses if the support level of $226.16 is broken.
Looking at the technical indicators at the time of entry, the RSI(14) stands at 40.6, indicating the stock is not in an oversold phase; the moving averages are in a non-bullish alignment, trading volume has increased to 2.60 times the 20-day average, and the price change over the recent 7 days was recorded at -4.9%.
In the pre-event history of this stock, a pattern was identified in which, following past similar events, the price reacted with +3.0% on 2026-08-21, +1.7% on 2026-08-24, and +2.4% on 2026-08-26, respectively.
Based on news that Amazon had recorded an all-time high and surpassed a $3 trillion market capitalization, the entry was made with a focus on a breakout above the 20-day resistance line ($258.08); however, the trade ultimately recorded a -10.4% return and received a FAILED verdict. Although indicators at the time—RSI(14) of 40.6, misaligned moving averages, and a recent 7-day change of -4.9%—suggested the possibility of a short-term correction, the analysis leaned too heavily on the surging trading volume (2.60x the 20-day average) and the news alone, failing to adequately defend against the downside risk that remained exposed all the way down to the support line ($226.16)—a regrettable shortcoming.
Through the failure of this trade, I learned that positive news and increased trading volume do not immediately translate into sustained upward movement, and that the non-alignment indicated by technical indicators and volatility must be interpreted more conservatively. In future trades, even at the moment of a resistance line breakout, I will thoroughly calculate the distance to the support line and the risk zone, and apply stop-loss criteria more strictly.