AMZN Testing Breakout Zone – Will Bulls Hold the Momentum?Technical Analysis & Options Outlook
📌 Current Price: $196.05
📌 Trend: Bullish Momentum with Key Resistance Ahead
📌 Timeframe: 1-Hour
Price Action & Market Structure
1. Bullish Reversal Confirmed – AMZN rebounded from the $190 PUT Wall, forming a higher low.
2. Breakout Attempt in Progress – Price is testing the trendline resistance, a key breakout zone.
3. Retest Possible – If rejected at $198–$200, AMZN may pull back to $195–$192 before continuing higher.
4. MACD & Stoch RSI – Both indicate strong bullish momentum, but Stoch RSI is nearing overbought territory, signaling possible short-term consolidation.
Key Levels to Watch
📍 Immediate Resistance:
🔹 $198 – Trendline Breakout Level
🔹 $200 – Major CALL Resistance (70.86%)
🔹 $202.50 – Strong CALL Wall & Potential Profit-Taking Zone
📍 Immediate Support:
🔻 $195 – Breakout Retest Zone
🔻 $190 – Highest Negative NETGEX / PUT Support
🔻 $185 – Deeper Liquidity Zone for Buyers
Options Flow & GEX Sentiment
* IVR: 40.7 (Moderate Volatility)
* IVx: 36.1 (-2.26%) (Declining Volatility)
* GEX (Gamma Exposure): Bullish Sentiment Improving
* CALL Walls: $200 & $202.50 (Upside targets)
* PUT Walls: $190 & $185 (Major support zones)
📌 Options Insight:
* Above $198, expect a gamma-driven move toward $200–$202.50 if momentum sustains.
* Below $195, risk increases for a test of $190, which has been a strong demand zone.
My Thoughts & Trade Recommendation
🚀 Bullish Case: If AMZN holds above $195, expect continuation to $200–$202.50.
⚠️ Bearish Case: If AMZN fails at $198, expect a retest of $190–$185 before another move higher.
Trade Idea (For Educational Purposes)
📌 Bullish Play:
🔹 Entry: Break and hold above $198
🔹 Target: $200–$202.50
🔹 Stop Loss: Below $195
📌 Bearish Play (Hedge Idea):
🔻 Entry: Rejection at $198
🔻 Target: $190 PUT Wall
🔻 Stop Loss: Above $200
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research and manage risk accordingly.
Final Thoughts
AMZN is in a critical breakout zone at $198. A strong move above this level could trigger a rally toward $200–$202.50, while failure to break could lead to a pullback toward $190 before attempting another move up. Watch price action carefully and wait for confirmation before entering a trade.
