AMZN - The hammer
Updated
Hello Everyone! let's look at the chart and see what we spot after two days sell off on AMZN and on indexes as well.
Yesterday AMZN traded across its 50 sma which acted as a support area and at the end of the session it almost recaptured its 20 sma at 3303 (closing daily at 3294). The candlestick it formed is a hammer, known also as a bullish pin bar. This type of candle has to be confirmed with a green candle closing above the high of today's closing, in that case it will be a pretty nice bullish signal. Anyhow, it is good to remember that even when we have a high percentage of success, there is still a small chance the market will trade lower to another level of support, here is why I indicated two lower levels where the price might find the next support areas if start selling off again.
With all the liquidity the FED injected I doubt we will trade much lower than that, despite the divergence we can spot on the chart between price and RSI indicator as the bottom line of this movement might be the 50 sma just touched.
If you like to leave a comment pls do that on the section below and....may the market be with us!
Yesterday AMZN traded across its 50 sma which acted as a support area and at the end of the session it almost recaptured its 20 sma at 3303 (closing daily at 3294). The candlestick it formed is a hammer, known also as a bullish pin bar. This type of candle has to be confirmed with a green candle closing above the high of today's closing, in that case it will be a pretty nice bullish signal. Anyhow, it is good to remember that even when we have a high percentage of success, there is still a small chance the market will trade lower to another level of support, here is why I indicated two lower levels where the price might find the next support areas if start selling off again.
With all the liquidity the FED injected I doubt we will trade much lower than that, despite the divergence we can spot on the chart between price and RSI indicator as the bottom line of this movement might be the 50 sma just touched.
If you like to leave a comment pls do that on the section below and....may the market be with us!
Note
red candle today, the price has just closed few dollars below its 50 sma...not a bullish signal
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