Is Amazon stock trapping retail traders? Is it too late?Historically, Amazon tends to experience a run-up leading into Prime Day, which could add positive momentum to the stock. There are some indications that history might, in fact, repeat itself.
The yellow line represents the 6-month anchored VWAP, while the white line shows the July highs anchored VWAP. These VWAPs are crucial as they provide a strong indication of where average buying and selling have occurred over significant time frames, acting as dynamic support or resistance levels.
I anticipate strong resistance near the August highs, as this is a level where increased supply could enter the market. To counter this, I am hoping for a tight consolidation or base formation in the $183.22 - $187.50 range, setting up for a powerful upside move.
If the price can hold within this range, it could pave the way for a retest of the August high and potentially push further up towards $200 by the end of the year.
