Here's the key level Amazon needs to break to retake $2,000

Amazon's stock is up against a key resistance level as it tries to rally back to record highs, and one technical analyst says the odds are in favor of Amazon breaking that barrier.

Ari Wald, head of technical analysis for Oppenheimer, said Monday on CNBC's "Trading Nation" that Amazon is on track to break above a $1,770 level of resistance. It closed on Monday at $1,696.17, up 1.46 percent, after Evercore ISI raised its price target.

That, combined with Amazon's stock pushing above its 100-day moving average, should create the necessary momentum to send shares soaring, possibly even back to the monumental $2,000 level they first grazed in August, Wald said. Technicians often use stocks' long-term moving averages as indicators for where prices are headed.

"We're bullish on Amazon," he said. "Over about the last five months, it's underperformed. We're seeing that weakness start to abate, so I think the road to recovery is higher. ... I think, as long as you're above [the] $1,600 support [level] — those were the recent lows — I think it's more likely that this breaks to the upside, above $1,770 resistance, and we see a resumption of the stock's long-term uptrend."

Chantico Global CEO Gina Sanchez said that while broad-based pressure on cloud stocks was partly to blame for Amazon's recent underperformance, the cloud could also be the stock's saving grace.

"I do actually think that that's really what's going to continue to push Amazon up, ... the AWS side of their business," she said, referring to the e-commerce giant's lucrative Amazon Web Services arm.

"But the rest of the business is continuing to, quite frankly, pose a huge challenge to bricks-and-mortar buying, and I think that that continues as well," Sanchez said on "Trading Nation." "So we actually do see some support for Amazon here."

Amazon shares are up 30 percent from the December low and 13 percent this year. On Monday, Evercore ISI analyst Anthony DiClemente placed a $1,965 price target on the stock, up from $1,800, arguing that it looked cheap at its current levels based on what he saw as a more accurate metric for the company: gross profit growth.

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

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