AMZN 8/19Current Observations:
Ichimoku Cloud: The price is above the Ichimoku cloud, which generally indicates a bullish trend. The cloud appears to be rising, supporting further upside potential.
Support and Resistance Levels:
Resistance 1 (R1): 174.73 appears to be a previous resistance level that has been surpassed, which may now act as support.
New Resistance Levels: Based on the chart, new resistance could form around 178.15 (current level) and possibly 180.
Stochastic RSI: The Stochastic RSI is approaching the overbought territory, which could indicate a potential pullback or consolidation before the next move.
Potential Scenarios:
Bullish Scenario:
Entry Point: If AMZN consolidates and holds above the 174.73 support level, a potential entry could be around 175-176.
Target Exit: You could aim for a target around 180-182, considering the current momentum and resistance levels.
Bearish Scenario:
Entry Point: If the price drops below the 174.73 support level, consider waiting for a potential bounce before shorting. Enter around 174.
Target Exit: A potential exit target would be around 172 or even 170, depending on the strength of the downward move.
Conclusion:
Primary Trend: The trend is bullish as long as AMZN stays above the Ichimoku cloud.
Short-Term: Watch for a potential pullback due to the Stochastic RSI being in the overbought region. However, as long as support levels hold, the trend remains positive.
It’s crucial to watch the opening session and how the stock reacts around these levels before making any trading decisions. Adjust stop losses accordingly to manage risk.
