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Amazon just broke above a key level, and its all-time high may be next, technician says

Amazon is most tactical it has been in years, says Oppenheimer's Ari Wald
Amazon is most tactical it has been in years, says Oppenheimer's Ari Wald

Shares of Amazon are climbing back toward their all-time high of $2,050, and one technical analyst believes the stock may soon reach that level — and then blow through it.

Oppenheimer's Ari Wald said Monday on CNBC's "Trading Nation" that after the stock topped $1,730, which had been a key level of resistance, new highs are on the horizon.

"We think this is a resumption of the longer term uptrend that's still in play," he said. "Speaking in terms of levels, the near-term breakout through the 200-day is now support at $1,730, and with the resumption of that long-term uptrend, we expect new highs above $2,000 level resistance."

He added that the stock's moving average convergence-divergence is tacking higher from its most oversold condition since 2014. (The MACD is a technical indicator that chart watchers use to help anticipate changes in a stock's path.)

Wald also said the broader economic backdrop creates favorable conditions for the e-commerce giant. As global growth slows, he believes investors will continue to place a premium on high-growth, large-cap companies like Amazon.

Shares of Amazon gained nearly 2 percent on Monday after Wald's colleagues at Oppenheimer reiterated their outperform rating on the stock, and raised their price target to $2,085. Monday's move brings its gain to roughly 20 percent for the year, and the stock is now about 11 percent from September's all-time high.

Chantico Global CEO Gina Sanchez contends that Amazon also looks good from a fundamental perspective, noting that the company's multi-industry dominance should lead to continued growth.

"I think that Amazon was one of those companies that put one foot in front of the other for a very long time. And then in 2018, [it] really hit its earnings stride … and now it's threatening industry after industry after industry. So I do think that the fundamental story is very solid for Amazon," she said on the CNBC segment.

Sanchez's one issue with Amazon is its valuation. Shares of the Seattle-based company currently trade at 59 times forward earnings, which Sanchez calls its "Achilles' heel." But apart from that, she believes Amazon "has a great story."

— Disclosure: Oppenheimer & Co. Inc. makes a market in the securities of AMZN.