Amazon has become volatile and corrective, but still holding the bullish bias over the uptrend line. Amazon volatility increased over $3,100 support level. Bulls to 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.
January 20, 2021, | AtoZ Markets – Amazon is currently trading around $3,120 price area and trying to retrace downside after having a 4-hour bullish engulfing candle. After giving a false bullish breakout above $3,250 to $3,270 resistance level, the price pushed downside towards $3,100 to $3,070 support level quite impulsively. However, AMZN failed to sustain the bearish pressure below $3,100 to $3,070 support area. As per the current price action, the price may face strong support at the uptrend line in the days ahead.
In addition, On Friday, Amazon (AMZN) Inc’s cloud computing department launched its first office in Greece to backing what it said was a developing number of organisations and public area offices utilising its cloud administrations. However, an initiative through Amazon Web Services (AWS) comes as Prime Minister Kyriakos Mitsotakis’ conservative administration has increased determination to pull in the foreign venture and attract cutting edge organisations to Greece.
Amazon Volatility Increased as the Bulls Are Still Optimistic
AMZN is currently residing near $3,120 price area and trying to decline. However, the price is still residing below the dynamic level of 20 EMA on the intraday chart.
Image: AMZN 4 Hour Chart
According to the 4-hour chart, Amazon volatility increased and currently trading around $3,120 price area. As per the current price action, if the price can have an impulsive bullish candle close above the engulfing candle’s high, the bulls may regain momentum and recover higher towards $3,250 to $3,270 price area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may act as strong resistance to push the price downward. However, the bulls may regain momentum if the price can break above the dynamic level in the coming days. Also, the MACD lines are currently residing below the 0.00 level and had a bullish crossover. Besides, the histogram has created a bullish divergence. Both indicate that bulls may regain momentum in the coming days.
AMZN Bulls May Regain Momentum
According to the daily chart, Amazon volatility increased, but the bulls are still optimistic. As per the current scenario, if the price can have a daily bullish candle close above $3,070 to $3,100 price area, the bulls may recover higher towards $3,250 to $3,270 price area in the process. Alternatively, if the price can break below $3,100 to $3,070 area with an impulsive bearish candle, the bears may sustain the bearish pressure towards $2,920 to $2,900 area in the days ahead.
Image: AMZN Daily Chart
Along with this, 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 down. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process.
To conclude, the price may find strong support at the uptrend line and continue the bullish trend further. A daily close is required to identify the definite momentum in the coming days.