Amazon failed to break below $2,950 to $2,900 support level and bounced back to $3,090 area. Amazon surged above $3,000 psychological event area. Bears to regain momentum again 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 10, 2021, | AtoZ Markets – Amazon is currently trading around $3,060 price area and trying to recover higher. After rejecting $3,350 to $3,300 key resistance area, the bears pushed the price down quite impulsively and broke below the uptrend line. As per the current price action, AMZN may face strong resistance around $3,100 to $3,150 price area again in the coming days.
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Amazon Surged Above as the Price Requires an Upward Retracement
Amazon is currently residing near $3,060 price area and trying to push higher. However, the price is currently facing resistance at the dynamic level on the intraday chart.
Image: AMZN 4 Hour Chart
According to the 4-hour chart, Amazon surged above and currently trading around $3,060 price area. As per the current price action, the bulls may push the price further upside towards $3,100 to $3,150 resistance area. So, if the price reaches $3,100 to $3,150 price area and rejects with an impulsive bearish candle, the bears may regain momentum and push the price down towards $2,950 to $2,900 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing near the price. So, it may work as strong resistance in the process. Also, the MACD lines are currently residing below the 0.00 level and had a bullish crossover. It indicates that the price may recover further upward in the days ahead.
AMZN Bears May Sustain the Bearish Pressure
According to the daily chart, Amazon surged above, but the bears are still residing on the market. As per the current scenario, if the price retraced towards $3,100 to $3,150 price area and rejects with an impulsive daily bearish candle, the bears may sustain the bearish bias 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 process.
Image: AMZN Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong resistance to push the price down. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the days ahead.
To conclude, after an impulsive bearish momentum, the price requires an upside retracement. A daily close may help to identify the certain momentum in the coming days.