Amazon has become corrective and volatile after bouncing from $2,900 to $2,950 support level. Amazon is facing resistance around $3,100 event area. Can bears 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.
March 17, 2021, | AtoZ Markets – Amazon is currently trading around $3,090 price area and trying to push lower. After breaking below $3,150 to $3,100 support level, the bears pushed the price downside quite impulsively, but failed to break beneath $2,950 to $2,900 event level. As per the current price action, the price may face strong resistance at the dynamic level of 20 EMA on the daily chart in the days ahead.
Moreover, Amazon.com said on Friday that Amazon.com’s Prime Video will co-produce a Bollywood movie, denoting the streaming goliath’s foray into film creation in India. However, the South Asian country is one of Amazon’s quickest developing Prime Video markets, where founder Jeff Bezos has said it is showing improvement over elsewhere in the world.
Amazon Facing Resistance as the Overall Bias Is Still Bearish
Amazon is currently residing near $3,090 price area and trying to decline. However, after an impulsive bearish momentum, the price has retraced upside towards the dynamic level on a daily chart successfully.
Image: Amazon 4 Hour Chart
According to the 4-hour chart, Amazon facing resistance 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 $3,150 to $3,100 price area, the bears may regain momentum and push the price down towards $2,950 to $2,900 price area in the coming days. Alternatively, if the price push higher and breaks over $3,100 to $3,150 resistance area with an impulsive bullish candle, the bulls may recover upward towards $3,220 to $3,250 price area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upward. However, the bears may regain momentum if the price can break below the dynamic level in the days ahead. Also, the Stochastic Oscillator lines are currently residing near the overbought level 80 and may have a bearish crossover. It indicates that the bears may regain momentum in the coming days.
AMZN Bears May Sustain the Bearish Pressure
According to the daily chart, Amazon facing resistance as the bears are still optimistic. As per the current price action context, 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 price area as a first target. The second target will be $2,750 to $2,700 price area if the price can break below $2,950 to $2,900 price area in the coming days.
Image: Amazon Daily Chart
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as strong resistance to push the price downside. Besides, the Bollinger Bands’ middle band may work as a confluence of the dynamic level in the process.
To conclude, after retracing towards the dynamic level, the price had a daily bearish candle close below $3,150 to $3,100 price area. Another impulsive daily candle is required to identify the definite momentum in the coming days.