Amazon Broke Over $3,350 Resistance Level – Will Continue Higher?


Amazon sustains its bullish trend and strikes above $3,350 to $3,370 psychological event area. Amazon broke over $3,350 significant resistance level. Will the price continue further higher 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 16, 2021, | AtoZ Markets – Amazon is currently trading around $3,380 price area and trying to push upside. After breaking over $3,240 to $3,250 resistance level, the bulls pushed the price higher impulsively and hit May 2021’s high, which is around $3,350 to $3,370 price area. As per the current price action context, the price may retrace downside towards the dynamic level on the daily chart in the coming days.

Amazon Broke Over as the Investors Are Optimistic

Amazon is currently residing near $3,380 price area and trying to recover higher. However, the price had an impulsive daily bullish candle close above $3,350 to $3,370 price area.

Amazon Broke

Image: AMZN 4 Hour Chart

According to the 4-hour chart, Amazon broke over and currently trading around $3,380 price area. As per the current scenario, if the price can have an impulsive bearish candle close below $3,370 to $3,350 price area, the bears may regain momentum and push the price down towards $3,310 to $3,300 price area in the process. On the contrary, if the price can have an impulsive bullish candle close above $3,350 to $3,370 price area, the bulls may sustain the bullish trend towards $3,430 to $3,450 price area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing below the price, which may pull the price down as a mean reversion. Moreover, the Stochastic Oscillator lines are currently residing above the overbought level 80 and had a bearish crossover. It indicates that the bears may regain momentum in the days ahead.

AMZN May Revert Back to the Mean

According to the daily chart, Amazon broke over as the overall bias is still bullish. As per the current price action, the price may retrace downside towards $3,310 to $3,300 price area in the coming days. So, if the price retraced towards $3,310 to $3,300 support level and bounced higher with an impulsive daily bullish candle, the bulls may sustain the bullish trend towards $3,350 to $3,370 price area as a first target. The second target will be $3,430 to $3,450 price area if the price can break above $3,350 to $3,370 price area in the days ahead.

Amazon Broke

Image: AMZN Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may pull the price down as a mean reversion. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. However, the Bollinger Bands upper band may work as a strong resistance if the price can have a bearish candle close below it.

To conclude, after an impulsive bullish momentum, the price requires a downside retracement. As the overall bias is bullish, there is a high chance that the price may continue further upward after a downward retracement in the coming days.

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