Amazon has become volatile and corrective after rejecting $3,400 to $3,350 price area. Amazon faced resistance around $3,350 psychological event level. Bears to regain momentum 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.
February 10, 2021, | AtoZ Markets – Amazon is currently trading around $3,300 price area and trying to push downside. After bouncing from $3,200 to $3,220 support level, the bulls pushed the price higher impulsively, but failed to sustain the bullish pressure over $3,350 to $3,400 price area. As per the current price action, the price may retrace towards the dynamic level on the daily chart in the coming days.
Furthermore, Amazon (NASDAQ:AMZN) attained a little glee to Britain’s pandemic-battered job market on Friday, saying it will select in excess of 1,000 beginners in 2021. However, the United Kingdom’s unemployment rate hit 5% in November 2020, its maximum mid-2016, as per official information. Moreover, Amazon said that the apprenticeships will cover 25 unique projects ranging from IT, security expert, and HR through to robotics, software programming, and innovative computerized plan.
Amazon Faced Resistance as the Event Level Worked Strongly
Amazon is currently residing near $3,300 price area and trying to decline further. However, the price is still residing over the Kumo Cloud on the daily chart.
Image: AMZN 4 Hour Chart
According to the 4-hour chart, Amazon faced resistance and currently trading around $3,300 price area. As per the current price action, if the price can have an impulsive bearish candle close below the dynamic level, the bears may sustain the bearish pressure towards $3,220 to $3,200 price area again in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. Also, the Stochastic Oscillator lines are currently residing below the overbought level 80 and gradually sloping down. It indicates that the bears may continue the bearish pressure further in the days ahead.
AMZN Bulls Are Still Residing on the Market
According to the daily chart, Amazon faced resistance, but the overall bias is still bullish. As per the current scenario, if the price retrace towards $3,250 to $3,220 support level and bounced upside with an impulsive daily bullish candle, the bulls may continue the bullish trend towards $3,350 to $3,400 price area as a first target. The second target will be $3,520 to $3,560 key level if the price can break over $3,350 to $3,400 price area in the process.
Image: AMZN Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. So, the dynamic level may act as strong support to push the price higher. Besides, the Kijun line may work as a confluence of the dynamic level in the days ahead.
To conclude, as long as the price residing over the Kumo Cloud on the daily chart, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days.