Amazon has faced resistance around $3,170 to $3,180 price area, after an impulsive bullish momentum. Amazon dropped below $3,150 price area. Bears to push the price further downward 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.
March 24, 2021, | AtoZ Markets – Amazon price fall yesterday during the New York session. Amazon is currently trading around $3,135 price area and trying to push lower. The bulls have regained momentum after bouncing from $3,000 to $3,020 support level, but failed to break over $3,170 to $3,180 psychological event level. As per the current price action, the price may face strong support around $3,090 to $3,100 price area in the days ahead.
Furthermore, Amazon.com Inc (NASDAQ:AMZN) is growing its virtual medical care administration to other Washington-state employers beginning Wednesday and to its own workers cross country this mid-year, the organization said in an official statement.
Amazon Dropped Below as the Price Faced Strong Resistance
Amazon is currently residing near $3,135 price area and trying to decline further. However, the price also broke above the dynamic level of 20 EMA on the daily chart.
Image: Amazon 4 Hour Chart
According to the 4-hour chart, Amazon dropped below and currently trading around $3,135 price area. As per the current price action, the bears may push the price downside towards $3,100 to $3,090 price area in the process. So, if the price declines towards $3,100 to $3,090 price area and bounced upside with an impulsive bullish candle, the price may recover higher towards $3,170 to $3,180 price area as a first target. The second target will be $3,250 to $3,270 price area if the price can break above $3,170 to $3,180 price area in the coming days.
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 act as a strong support to push the price upward. Besides, the Bollinger Bands’ middle band may work as a confluence of the dynamic level in the process.
AMZN Bears May Regain Momentum
According to the daily chart, Amazon dropped below as the bears are still optimistic. As per the current scenario, if the price push lower and breaks below $3,100 to $3,090 price area with a daily bearish candle, the bears may regain momentum and decline towards $2,920 to $2,900 price area in the days ahead. Alternatively, if the price push higher and breaks above $3,170 to $3,180 price area with an impulsive bullish candle, the price may recover higher towards $3,350 to $3,370 price area in the process.
Image: Amazon Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upside. However, the bears may regain momentum if the price can break below the dynamic level in the coming days. In addition, the Stochastic Oscillator lines are currently residing below the overbought level 80 and may have a bearish crossover. It indicates that the bears my regain momentum in the process.
To conclude, after an impulsive bearish momentum, the price has successfully retraced higher. An impulsive daily breakout is required to identify the definite momentum in the coming days.