Amazon Broke Below $3,130 Event Level – Will Decline Further?


Amazon bears have regained momentum after giving a false breakout above $3,240 to $3,280 price area. Amazon broke below $3,130 psychological event level. Will it decline further downside in the days ahead? What are the charts and technical indicators are saying? Read more to find further insights into today’s AMZN Technical Analysis.  

January 13, 2021, | AtoZ Markets – Amazon is currently trading around $3,120 price area and trying to decline further. After rejecting the dynamic level of 20 EMA, the bears pushed the price down and had a daily bearish candle close below $3,130 price area. As per the current price action, the price may face strong support around $3,080 to $3,130 price area in the coming days.

In addition, Amazon (NASDAQ:AMZN) said on Monday; it was attempting to eliminate some QAnon items from its online marketplace, referring to policies that restrict invective products or other improper substances. The world’s biggest online retailer drew scrutiny for having clothing with QAnon symbol and related books up for sale days after QAnon devotees joined last week’s attack of the U.S. Capitol, which left five individuals dead.

Amazon Broke Below as Bears Are Optimistic

AMZN is currently residing near $3,120 price area and trying to push downward. However, the price also broke below the Kumo Cloud on the daily chart.

Amazon Broke Below

Image: AMZN 4 Hour Chart

According to the 4-hour chart, Amazon broke below and currently trading around $3,120 price area. As per the current scenario, if the price can have an impulsive bearish candle close below $3,130 to $3,080 price area, the bears may sustain the bearish pressure towards $3,020 to $3,000 price area in the process. Alternatively, if the price can have an impulsive bullish candle close above $3,080 to $3,130 price area, the bulls may recover higher towards $3,240 to $3,280 price area in the coming days.

Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may work as strong support to push the price downside. Also, the Stochastic Oscillator lines are currently residing below the oversold level 20 and had a bullish crossover. It indicates that the bulls may regain momentum in the days ahead.

AMZN May Decline Towards September 2020’s Low

According to the daily chart, Amazon broke below as the bears are optimistic. As per the current price action, if the price can have an impulsive daily bearish candle close below $3,130 to $3,080 price area, the bears may sustain the bearish pressure towards $3,020 to $3,000 price area as a first target. The second target will be $2,920 to $2,900 price area if the price can break below $3,020 to $3,000 price area in the days ahead.

Amazon Broke Below

Image: AMZN Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.

To conclude, the price has successfully broken below the uptrend line with an impulsive daily bearish candle. A daily close is required above or below $3,130 to $3,080 price area to identify the definite momentum in the coming days. 

 

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