Amazon sustains its bullish momentum and hit October 2020’s highest peak. Amazon surged over $3,450 psychological key resistance level. Will the bulls continue further higher 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.
April 28, 2021, | AtoZ Markets – Amazon price rose today after the opening of the New York session. Amazon is currently trading around $3,475 price area and trying to climb further upside. After bouncing from $3,300 to $3,330 support level, the bulls have regained momentum and push the price upward quite impulsively and broke over $3,430 to $3,450 key resistance level. As per the current price action, the price may revert back to the mean on the daily chart in the coming days.
Amazon Surged Over as the Investors Are Optimistic
AMZN is currently residing near $3,475 price area and trying to recover higher. However, after an extended period of volatility, the bulls have successfully regained momentum.
Image: AMZN 4 Hour Chart
According to the 4-hour chart, Amazon surged over and currently trading around $3,475 price area. As per the current price action context, if the price can have an impulsive 4-hour bullish candle close above $3,430 to $3,450 price area, the bulls may sustain the bullish pressure towards $3,530 to $3,550 price area in the coming days. On the contrary, if the price can have an impulsive bearish candle close below $3,450 to $3,430 price area, the bears may regain momentum and push the price downside towards $3,330 to $3,300 price area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upward. Moreover, the MACD lines are currently residing above the 0.00 level and created a bearish divergence. Besides, the histogram has also created a bearish divergence. Both indicate that the bears may regain momentum in the coming days.
AMZN May Revert Back to the Mean
According to the daily chart, Amazon surged over as the bulls are optimistic. As per the current scenario, if the price rejects $3,500 to $3,480 price area with an impulsive daily bearish candle, the price may retrace downside towards $3,330 to $3,300 support level in the days ahead. So, if the price retraced towards $3,330 to $3,300 support area and bounced upward with a daily bullish candle, the bulls may sustain the bullish bias towards $3,480 to $3,500 price area as a first target. The second target will be $3,550 to $3,575 key area if the price can break above $3,480 to $3,500 price area in the process.
Image: AMZN Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price downside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead.
To conclude, after an impulsive bullish momentum, the price may revert back to the mean. If the price can have a daily bearish candle close below $3,500 to $3,480 price area, there is a high chance that the price may retrace lower towards the dynamic level in the coming days.