Amazon has become volatile, but still holding the bearish momentum below $3,260 to $3,240 price area. Amazon bears have regained momentum after rejecting $3,320 to $3,300 resistance level. Will the bears sustain the bearish pressure further in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s AMZN Technical Analysis.
June 2, 2021, | AtoZ Markets – Amazon is currently trading around $3,220 price area and trying to push downside. The bulls failed to sustain the bullish pressure over $3,300 to $3,320 psychological resistance area and dropped below $3,260 to $3,240 support area again. As per the current price action, the dynamic level of 20 EMA may work as a strong resistance on the daily chart in the coming days.
Amazon Bears Regained Momentum as the Bulls Failed To Continue Further
AMZN is currently residing near $3,220 price area and trying to push lower. However, the price is also facing resistance at the Bollinger Bands middle band on the daily chart.
Image: AMZN 4 Hour Chart
According to the 4-hour chart, Amazon bears regained and currently trading around $3,220 price area. As per the current price action, if the price can have an impulsive bearish candle close below the last candle’s low, the bears may sustain the bearish pressure towards $3,150 to $3,130 price area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price, which has already worked as strong resistance and pushed the price down. Along with this, the MACD lines are currently residing below the 0.00 level and may have a bearish crossover. It indicates that the bears may continue further lower in the process.
AMZN May Nose Dive to March’s Low
According to the daily chart, Amazon bears regained as the resistance level worked strongly. As per the current scenario, if the price can have an impulsive daily bearish candle close below $3,260 to $3,240 price area, the price may decline towards $3,150 to $3,130 support level in the process. So, if the price declines towards $3,150 to $3,130 support level and bounced higher, the bulls may regain momentum and push the price upward towards $3,240 to $3,260 price area again in the coming days. On the other hand, if the price can break below $3,150 to $3,130 support level with a daily bearish candle, the bears may continue to push the price lower towards $3,020 to $3,000 price area in the days ahead.
Image: AMZN Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as strong resistance to push the price downward. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. However, the Bollinger Bands’ lower band is currently residing below the price, which may work as strong support in the days ahead.
To conclude, as the bears are holding the momentum below $3,260 to $3,240 resistance level with a daily bearish candle close, there is a high chance that AMZN may continue further lower in the coming days.