Amazon (AMZN) Approaching Key Reversal Levels – What's Next?Technical Analysis (TA)
Trend: AMZN has been in a downtrend, forming lower highs and lower lows.
Support & Resistance Levels:
Major Resistance: $202.26 – This is a key level where price could face rejection.
Support Zones: $190 - $195 – A breakdown below this area could lead to further downside.
Indicators:
MACD: Showing signs of bullish divergence, indicating a potential short-term reversal.
Stochastic RSI: Overbought conditions – price could see some consolidation before the next move.
Possible Scenarios:
If AMZN breaks and holds above $202.26, a move toward $209.90 and higher is possible.
If rejection occurs at this level, watch for a pullback to $195 - $190 for a retest.
GEX & Options Flow Analysis
Gamma Exposure (GEX) Highlights:
Highest Positive NetGEX / Call Resistance: $220 – A strong gamma wall, indicating resistance.
Put Support Levels: $190 - $195 – Dealers may have to buy to hedge if price drops here.
Implied Volatility & Options Sentiment:
IV Rank (IVR): 61.1 – Elevated volatility suggests increased uncertainty.
Options Sentiment: Puts = 5.3% – Low put positioning, indicating bullish bias.
Thoughts & Suggestions
A break above $202.26 could lead to a strong upside move, but watch for rejection signs.
If price consolidates above $195, it could signal accumulation before a breakout.
Watch volume and options activity for confirmation before taking trades.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage risk accordingly.
