Amazon bears have regained momentum and holding the bearish bias below $3,150 to $3,100 price area. Amazon broke below $3,100 psychological support area. Is this the end of the bullish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s AMZN Technical Analysis.
March 3, 2021, | AtoZ Markets – Amazon is currently trading around $3,090 price area and trying to push lower. After rejecting $3,430 to $3,400 key resistance area, the bears pushed the price downside quite impulsively and broke below the uptrend line with an impulsive weekly bearish candle close. As per the current price action, AMZN may face strong resistance at the Kumo Cloud on the daily chart in the coming days.
Moreover, as Amazon focuses on central and eastern Europe, the e-commerce Goliath should persuade long-term Allegro customers like Elzbieta Modrakowska to click away from the locale’s driving online marketplace. While focusing on its extension to other, greater business sectors, Amazon has given organisations, for example, Allegro the chance to lay profound roots and get ready for their appearance. Something the Polish company has done with loyalty projects, free distribution and different advantages.
Amazon Broke Below as the Bears Are Optimistic
Amazon is currently residing near $3,090 price area and trying to decline further. However, the bulls have failed to sustain the bullish bias over $3,100 to $3,150 support levels after making several attempts.
Image: AMZN 4 Hour Chart
According to the 4-hour chart, Amazon broke below and currently trading around $3,090 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 $2,950 to $2,900 support level in the days ahead.
In addition, 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. However, the price also broke below the Kumo Cloud, which indicates that the bears may decline further downward in the coming days.
AMZN May Decline Further Downside
According to the daily chart, Amazon broke below and currently trading around $3,090 price area. As per the current scenario, if the price can have an impulsive bearish candle close below $3,150 to $3,100 price area, the bears may continue the bearish pressure towards $2,950 to $2,900 price area in the process. Alternatively, if the price can have an impulsive bullish candle close above $3,100 to $3,150 price area, the bulls may regain momentum and recover higher towards $3,450 to $3,500 key level in the days ahead.
Image: AMZN Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. Also, the Stochastic Oscillator lines are currently residing near the oversold level 20 and had a bullish crossover. It indicates that the bulls may regain momentum in the coming days.
To conclude, after an extended period of volatility, the bears have successfully nose dive below the uptrend line. A daily close will help to identify the definite momentum in the days ahead.