AMZN Holding a Rising Channel! Will Momentum Push It Higher?
30-Minute Timeframe Analysis
* Trend Overview: AMZN continues to trade in a rising channel with consistent higher highs and higher lows. The price is currently near $228.83, a key resistance level. The possibility of a market gap up or down at the open may change this structure significantly, requiring traders to reassess and adapt their plans accordingly.
* Key Levels:
* Support: $224.87 and $218.19 are critical areas for buyers to step in if the market gaps down.
* Resistance: $228.83 and $233.65 are immediate levels to break if bullish momentum continues or a gap up occurs.
* Indicators:
* MACD: Slightly bullish but losing momentum, signaling possible consolidation unless a gap up re-establishes strength.
* Volume: A surge in volume aligns with recent upward movement, but follow-through is needed for a sustained breakout.
1-Hour GEX (Gamma Exposure) Insights
* Key Gamma Levels:
* Positive GEX: $230 and $235 are strong call resistance levels, with $230 as the highest positive gamma wall. A gap up could lead to rapid tests of these zones.
* Negative GEX: $217.50 and $215 are key put support areas, providing protection in case of a gap down.
* Options Metrics:
* IVR: Moderate at 56.1, indicating favorable conditions for directional trades.
* Calls vs. Puts: Calls dominate at 1.8%, signaling cautious optimism among market participants.
* Actionable Gamma Zones:
* Bullish Scenario: A sustained move above $228.83 or a gap up could lead to a gamma squeeze toward $233.65 or higher.
* Bearish Scenario: A gap down below $224.87 may activate put support and drive the price toward $218.
Trade Scenarios
* Bullish Setup:
* Entry: Break and hold above $228.83, or after a gap up that sustains above $230.
* Target: $233.65 and $235.00.
* Stop-Loss: Below $226.00.
* Bearish Setup:
* Entry: Breakdown below $224.87, or after a gap down that fails to reclaim $225.
* Target: $218.19 and $215.00.
* Stop-Loss: Above $227.00.
Important Note for Traders
* Market gaps at the open can shift the outlook significantly. Reassess support and resistance levels during the pre-market session and adapt your strategy to align with the updated price action.
* If you need technical analysis for AMZN or any other stock, feel free to contact me for tailored insights and detailed analysis.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Please conduct your research and trade responsibly
