Amazon Approaches All-Time Closing High

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Amazon.com, Inc. AMZN shares were trading higher by $9.50 (2 percent) at $443.89 in Friday's session. Let's examine the technicals for a possible cause for the rally.

Of course, the major rally in the broad market is certainly a contributing factor. Also, analysts at Bank of America Merrill Lynch have apparently valued Amazon Web Services (AWS) at $57 billion.

Related Link: Prime Day: Amazon's Ploy To Get More Users Before Shopping Season

After a higher open ($440.39 vs. Thursday's close of $434.39), it retreated to $439 before resuming its rally. So far, it has taken the issue to $444.72. That is just shy of its April 27 high ($446.99), which was the day following its Q1 report when it made its all-time high at $452.65 and its all-time closing high at $445.10.

Since making its all-time high, the issue has found major support around the $415-$420 level and ricocheting back to the $440 area, but unable to make a new all-time high. Besides its all-time high close, it has only posted two other closes over $440. That was on back-to-back days on June 24 ($440.84) and June 25 ($440.10).