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.
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