AMZN: Strong Rebound or Further Downside? Nov. 18, 2024
Amazon (AMZN) has experienced a significant pullback, but signs of a potential bounce are emerging. With strong volume near critical levels, it offers opportunities for both scalping and swing trades. Let’s break down the key zones and actionable setups.
Technical Overview:
Market Structure:
Trend: Downtrend from recent highs, with buyers attempting to establish a base near $202.50.
EMA Levels: Price is below the 9 EMA (purple) and 21 EMA (blue), suggesting bearish pressure but with potential for a recovery.
Key Levels:
Resistance Zones:
$205.50 – Key resistance aligned with previous support-turned-resistance.
$209.90 – Psychological resistance and prior high.
$216.00 – Major supply zone from the recent highs.
Support Zones:
$202.00 – Current support level holding strong.
$200.00 – Psychological support.
$198.00 – Critical demand zone.
Supply and Demand Zones:
Demand Zone: $200.00–$202.00 (buyers stepping in with high volume).
Supply Zone: $205.50–$209.90 (sellers dominating at these levels).
Indicators:
MACD: Histogram shows bearish momentum slowing, with a potential bullish crossover developing.
Volume: Increasing green volume bars indicate growing buyer interest near $202.00.
Pattern:
Descending channel with potential for a breakout above $205.50.
Game Plan:
Scalping Plan (1-Min and 5-Min Timeframe):
Entry for Long:
Buy if price breaks above $205.50 with strong volume.
Target 1: $207.50 (mid-supply zone).
Target 2: $209.90 (upper resistance zone).
Entry for Short:
Sell if price rejects $205.50 or breaks below $202.00.
Target 1: $200.50 (psychological level).
Target 2: $198.00 (demand zone test).
Stop Loss:
Long: Below $204.50.
Short: Above $206.00.
Swing Trade Plan:
Bullish Scenario:
Buy if price holds above $202.00 and breaks above $209.90.
Target 1: $216.00 (major supply zone).
Extended Target: $220.00 (channel breakout target).
Stop Loss: Below $200.00.
Bearish Scenario:
Sell if price fails to hold $202.00 and breaks below $200.00.
Target 1: $198.00 (demand zone).
Extended Target: $195.00 (lower channel boundary).
Stop Loss: Above $203.50.
My Thoughts:
For Scalping: Focus on breakouts or rejections at $205.50 for quick trades. Keep an eye on volume to confirm direction.
For Swing Trades: Price action around $202.00 is critical. Holding this level sets up a bullish move, while failure could lead to further downside.
Directional Bias:
Short-term: Neutral-to-bullish if $202.00 holds as support.
Mid-term: Slightly bearish unless price reclaims $205.50 convincingly.
Actionable Suggestions:
Monitor $202.00 for signs of a potential bounce.
Watch for breakout or rejection at $205.50 to plan scalping trades.
Avoid trading within the $202.00–$205.50 range to reduce noise.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Always use proper risk management when trading.
Technical Overview:
Market Structure:
Trend: Downtrend from recent highs, with buyers attempting to establish a base near $202.50.
EMA Levels: Price is below the 9 EMA (purple) and 21 EMA (blue), suggesting bearish pressure but with potential for a recovery.
Key Levels:
Resistance Zones:
$205.50 – Key resistance aligned with previous support-turned-resistance.
$209.90 – Psychological resistance and prior high.
$216.00 – Major supply zone from the recent highs.
Support Zones:
$202.00 – Current support level holding strong.
$200.00 – Psychological support.
$198.00 – Critical demand zone.
Supply and Demand Zones:
Demand Zone: $200.00–$202.00 (buyers stepping in with high volume).
Supply Zone: $205.50–$209.90 (sellers dominating at these levels).
Indicators:
MACD: Histogram shows bearish momentum slowing, with a potential bullish crossover developing.
Volume: Increasing green volume bars indicate growing buyer interest near $202.00.
Pattern:
Descending channel with potential for a breakout above $205.50.
Game Plan:
Scalping Plan (1-Min and 5-Min Timeframe):
Entry for Long:
Buy if price breaks above $205.50 with strong volume.
Target 1: $207.50 (mid-supply zone).
Target 2: $209.90 (upper resistance zone).
Entry for Short:
Sell if price rejects $205.50 or breaks below $202.00.
Target 1: $200.50 (psychological level).
Target 2: $198.00 (demand zone test).
Stop Loss:
Long: Below $204.50.
Short: Above $206.00.
Swing Trade Plan:
Bullish Scenario:
Buy if price holds above $202.00 and breaks above $209.90.
Target 1: $216.00 (major supply zone).
Extended Target: $220.00 (channel breakout target).
Stop Loss: Below $200.00.
Bearish Scenario:
Sell if price fails to hold $202.00 and breaks below $200.00.
Target 1: $198.00 (demand zone).
Extended Target: $195.00 (lower channel boundary).
Stop Loss: Above $203.50.
My Thoughts:
For Scalping: Focus on breakouts or rejections at $205.50 for quick trades. Keep an eye on volume to confirm direction.
For Swing Trades: Price action around $202.00 is critical. Holding this level sets up a bullish move, while failure could lead to further downside.
Directional Bias:
Short-term: Neutral-to-bullish if $202.00 holds as support.
Mid-term: Slightly bearish unless price reclaims $205.50 convincingly.
Actionable Suggestions:
Monitor $202.00 for signs of a potential bounce.
Watch for breakout or rejection at $205.50 to plan scalping trades.
Avoid trading within the $202.00–$205.50 range to reduce noise.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Always use proper risk management when trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.