Amazon bears have regained momentum after rejecting $3,550 to $3,500 key resistance area. Amazon nose dive below $3,300 event area. Will the price decline 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.
May 5, 2021, | AtoZ Markets – Amazon is currently trading around $3,315 price area and trying to retrace higher. After bouncing from $3,300 to $3,340 support level, the bulls pushed the price upward quite impulsively and hit September 2020’s highest peak. As per the current price action context, the price may retrace upside towards $3,340 to $3,360 price area in the coming days.
Amazon Nose Dive as the Price Faced Strong Resistance
AMZN is currently residing near $3,315 price area and trying to climb upward. However, the price also broke below the dynamic level of 20 EMA on the daily chart.
Image: AMZN 4 Hour Chart
According to the 4-hour chart, Amazon nose dive and currently trading around $3,315 price area. As per the current price action, the price may retrace upward towards $3,340 to $3,360 price area in the coming days. So, if the price retraced towards $3,340 to $3,360 price area and rejects with an impulsive bearish candle, the bears may push the price down towards $3,220 to $3,200 price area in the process.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downward. Moreover, the MACD lines are currently residing over the 0.00 level and had a bearish crossover. Besides, the histogram has created a bearish divergence. Both indicate that the bears may sustain the bearish pressure further in the coming days.
AMZN Bears May Continue Further
According to the daily chart, Amazon nose dive as the key resistance level worked strongly. As per the current scenario, if the price can have an impulsive bearish candle close below the last candle’s low, the bears may continue the bearish pressure towards $3,220 to $3,200 price area as a first target. The second target will be $3,050 to $3,000 price area if the price can break below $3,220 to $3,200 price area in the process. On the contrary, if the price push higher and break over $3,340 to $3,360 price area with an impulsive bullish candle, the bulls may regain momentum and recover upward towards $3,500 to $3,550 key area in the coming days.
Image: AMZN Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price, which may work as strong resistance to push the price lower. Also, the Stochastic Oscillator lines are currently residing below the overbought level 80 after having a bearish crossover. It indicates that the bears may continue further down in the days ahead.
To conclude, after an extended period of bullish bias, Amazon has faced strong resistance at the key price level. A daily close is needed to identify the definite momentum in the coming days.