Amazon (NASDAQ: AMZN) is having a pullback after facing resistance from a major supply zone. The shares of the global tech giant attempted to break above their 2021 all-time high earlier this week but got rejected from the $187.34 level. At press time, the stock stood at $183.29 after opening lower on Wednesday.

The CPI data for March 2024 was released on April 10. The equity markets dropped immediately as the report showed a more-than-expected increase in consumer prices on a MoM and a YoY basis. The CPI report revealed that in the last 12 months, the headline CPI accelerated 3.5%. This was a 0.1% increase from the market estimates. A similar trend was observed in the core inflation numbers.

NASDAQ: AMZN Outlook As CPI Data Delays Rate Cuts

As a result of the sicky inflation numbers, the market expectation for the first-rate cut has changed dramatically. The CME Fed Watch is one of the most reliable gauges of the market sentiment. Currently, the tool shows that most of the market participants are expecting the Federal Reserve to start cutting rates in September instead of June.

Despite opening lower on the day of the CPI release, Amazon stock caught significant bids as the price dropped to the intraday low of $182.67. Although the stock was still down 0.87% for the day, the bounce indicated a persistent demand for the shares of the e-commerce giant among investors.

Amazon Stock Price Outlook And Technical Analysis

From the technical standpoint, NASDAQ: AMZN seems poised to break its 2021 all-time highs. It is very common for a stock to face selling pressure close to its record peak. Therefore, in the coming days, there could be another retest of the supply zone above $186.

However, for the Amazon stock price forecast to remain bullish, bulls must gain strength above the $188.65 level, turning it into a support level. In the event of a bigger correction, the technical support  around $171 might come into play.