TradingKey – On August 31, Amazon hovers around $266.43 after breaking a short-term descending trendline and recovering the 38.2% Fib level at around $263.95. While the Fib level was previously a resistance area, it is now a support. This is bullish, and it is further strengthened by solid fundamentals. AWS accelerated 37% growth, advertising remains a high-margin contributor, and Amazon is reportedly planning approximately $220 billion in capital spending this year, largely for AI infrastructure. The biggest question is if this spending on AI balances and continues to stimulate cloud growth and also alleviates the pressure on free cash flow.