Amazon has become volatile and corrective but still holding the bullish bias over $3,150 to $3,200 support zone. Amazon found support around $3,150 price level. Will bulls strike upward 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.
January 6, 2020, | AtoZ Markets – Amazon is currently trading around $3,220 price area and trying to recover upside. After bouncing from the uptrend line the bulls pushed the price upward, but failed to break above $3,320 to $3,350 resistance area and dropped below. As per the current price action, the price may face strong resistance at the dynamic level of 20 EMA on the intraday chart in the days ahead.
In addition, Amazon is alleviating a portion of the pressure on outsider sellers who pack and ship their own orders because of continuous Covid-19 botheration on significant delivery transporters. In August 2020, the organization reported that beginning in February 2021, individuals from Amazon’s Seller Fulfilled Prime program would be needed to make conveyances on Saturdays and meet one to two-day distribution targets.
Amazon Found Support as Bulls Are Optimistic
AMZN is currently residing near $3,220 price area and trying to climb upside. Moreover, the price also found support on the Kumo Cloud on the daily chart.
Image: AMZN 4 Hour Chart
According to the 4-hour chart, Amazon found support and currently trading around $3,220 price area. As per the current price action, if the price can have an impulsive bullish candle close above $3,150 to $3,200 support area, the bulls may recover higher towards $3,320 to $3,350 area in the process. Alternatively, if the price breaks below the uptrend line and closes below $3,200 to $3,150 price area, the bears may regain momentum and decline towards $3,050 to $3,000 price area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price upside. Also, the MACD lines are currently residing over the 0.00 level and may have a bullish crossover. It indicates that bulls may sustain the bullish pressure further in the days ahead.
AMZN May Sustain the Bullish Trend
According to the daily chart, Amazon found support as bulls are optimistic. As per the current scenario, if the price can have an impulsive daily bullish candle close above $3,150 to $3200 support area, the bulls may push the price upside towards $3,320 to $3,350 area as a first target. The second target will be $3,500 to $3,550 area if the price can break above $3,320 to $3,350 area in the days ahead.
Image: AMZN Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing near the price. So, the bulls may sustain the bullish pressure further if the price can have a daily bullish candle close above the dynamic level. Also, the price has to have a daily bullish close over the Kijun line and the Tenkan line to sustain the bullish pressure further in the process.
To conclude, as long as the price remains over $3,150 to $3,200 price area, the bias will be bullish. A daily close is required to identify the definite momentum in the coming days.