AMZN Consolidates Before Key Moves! Trade Setups to Watch
Analysis:
AMZN is trading within a well-defined ascending channel, showing resilience near the $220 level. The stock has faced consistent resistance at $227-$230, as indicated by strong call walls in GEX data. The MACD is slightly bearish, with momentum waning, while the Stochastic RSI indicates oversold conditions, suggesting a potential bounce.
Volume remains steady, reflecting a wait-and-see attitude among traders, with key levels acting as a magnet for price action.
Key Levels to Watch:
* Resistance Levels:
* $227-$230: Significant resistance zone with the highest GEX levels.
* $233: Psychological resistance, aligning with extended targets.
* Support Levels:
* $217.50: Immediate support zone.
* $215: Critical level, aligning with strong put walls.
* $210: Final downside support before significant selling could accelerate.
GEX Insights:
* Gamma Exposure (GEX):
* Positive GEX peaks near $227-$230, creating strong resistance to upside momentum.
* Negative GEX levels around $215 provide a critical support floor.
* Options Activity:
* IVR: High at 56.4, signaling elevated implied volatility.
* Call/Put Ratio: Calls remain subdued at 13.2%, indicating bearish positioning.
Trade Scenarios:
Bullish Scenario:
* Entry: Break above $227 with strong volume.
* Target: $230 (first target), $233 (extended target).
* Stop-Loss: Below $220.
Bearish Scenario:
* Entry: Break below $217.50 with increasing selling pressure.
* Target: $215 (first target), $210 (extended target).
* Stop-Loss: Above $222.
Directional Bias:
AMZN is range-bound, with a cautiously neutral to bearish bias. A breakout above $227 or breakdown below $217.50 will likely signal the next major move.
Actionable Suggestions:
* For Scalpers: Trade within the $217.50-$227 range until a clear breakout or breakdown occurs.
* For Swing Traders: Monitor key zones around $215-$230 for directional trades.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading.
