AMZN Today Nov. 7, 2024
Price Action & Trend:
Amazon is following an ascending channel pattern with a series of higher highs and higher lows, suggesting a strong uptrend.
The price is near the top of the channel, indicating potential resistance. If it breaks above this channel on high volume, it may continue the bullish momentum. Otherwise, it could face selling pressure and move back down toward the lower trendline.
Key Levels:
Resistance: Around $208. This level is just under the top of the channel, so it may act as a strong resistance zone. A breakout above $208 with solid volume could indicate further upside potential.
Support: Around $200 - This is the first support level within the channel and a potential area where buyers might step in on a pullback.
Lower Support Zone: Around $197 and $194 - These levels serve as additional support in case of a deeper pullback.
Volume & Momentum:
Volume seems to increase on upward moves, supporting the bullish trend. However, it’s crucial to monitor for potential volume decline if AMZN tests the resistance.
MACD shows potential overbought conditions, indicating a chance for a pullback or consolidation. Watch for a bearish divergence if momentum weakens near the channel top.
Potential Scenarios:
Bullish: If Amazon breaks above $208 with significant volume, it may continue to rise. Intraday traders could consider entering on a confirmed breakout, targeting further upside within the channel's extension.
Bearish: If AMZN is rejected at the $208 resistance, it could drop to the $200 level or lower support zones, presenting potential shorting opportunities on rejections at resistance or a breakdown below $200.
Disclaimer
This analysis is for informational purposes only and is not financial advice. Always do your own research or consult a financial professional before making trading decisions. Trading involves risks, and past performance is not indicative of future results.
Amazon is following an ascending channel pattern with a series of higher highs and higher lows, suggesting a strong uptrend.
The price is near the top of the channel, indicating potential resistance. If it breaks above this channel on high volume, it may continue the bullish momentum. Otherwise, it could face selling pressure and move back down toward the lower trendline.
Key Levels:
Resistance: Around $208. This level is just under the top of the channel, so it may act as a strong resistance zone. A breakout above $208 with solid volume could indicate further upside potential.
Support: Around $200 - This is the first support level within the channel and a potential area where buyers might step in on a pullback.
Lower Support Zone: Around $197 and $194 - These levels serve as additional support in case of a deeper pullback.
Volume & Momentum:
Volume seems to increase on upward moves, supporting the bullish trend. However, it’s crucial to monitor for potential volume decline if AMZN tests the resistance.
MACD shows potential overbought conditions, indicating a chance for a pullback or consolidation. Watch for a bearish divergence if momentum weakens near the channel top.
Potential Scenarios:
Bullish: If Amazon breaks above $208 with significant volume, it may continue to rise. Intraday traders could consider entering on a confirmed breakout, targeting further upside within the channel's extension.
Bearish: If AMZN is rejected at the $208 resistance, it could drop to the $200 level or lower support zones, presenting potential shorting opportunities on rejections at resistance or a breakdown below $200.
Disclaimer
This analysis is for informational purposes only and is not financial advice. Always do your own research or consult a financial professional before making trading decisions. Trading involves risks, and past performance is not indicative of future results.
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