AMZN Approaching Key Levels! Critical Moves Ahead - Jan 22Technical Analysis for Trading
* Trend Overview: AMZN continues its bullish trend, supported by a rising trendline. The price is consolidating near $231.40, testing immediate resistance. Momentum shows strength, but overbought conditions may trigger a short-term pullback.
* Key Levels:
* Resistance: $231.40 (current level) and $235.00 are critical zones for a breakout.
* Support: $228.75 and $225.94 are key levels to watch in case of a retracement.
* Indicators:
* MACD: Bullish, but momentum is tapering off, signaling potential consolidation.
* Stoch RSI: Overbought, which may lead to short-term profit-taking.
* Volume: Consistent buying interest supports the upward move. Any breakout must be confirmed by higher volume.
Gamma Exposure (GEX) Insights for Options Trading
* Key Gamma Levels:
* Positive GEX: $235.00 is the strongest resistance level, where the highest call wall resides.
* Negative GEX: $220.00 and $217.50 are critical put support zones.
* Options Metrics:
* IVR: At 52.4, options premiums are moderately high, offering opportunities for credit strategies.
* Call/Put Skew: Calls dominate at 23.6%, reflecting a bullish market sentiment.
* Actionable Gamma Zones:
* Bullish Scenario: A breakout above $231.40 could lead to rapid testing of $235.00 due to gamma-driven buying pressure.
* Bearish Scenario: A pullback below $228.75 might activate put support at $225.94.
Trade Scenarios
1. Bullish Setup:
* Entry: Break and hold above $231.40.
* Target: $235.00 and $237.50.
* Stop-Loss: Below $230.00.
2. Bearish Setup:
* Entry: Break below $228.75.
* Target: $225.94 and $220.00.
* Stop-Loss: Above $230.00.
Important Note
The market may experience volatility around key levels. Reassess price action during pre-market or intraday activity and adjust your strategy accordingly.
If you have questions or need analysis for another stock, feel free to reach out!
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always trade responsibly.