Updated: Jan 26
27th December 2021
When we analyse the AMZN monthly chart, we can see the price is forming an ascending triangle pattern, which is a bullish pattern, at the 3555 resistance level. Based on the pattern formation we expect the next midterm trend would be bullish and that will initiate after price breaks upward the 3555 resistance level.
Also, we can see an RSI bullish divergence signal in the monthly chart. That also indicates the initiation of the next midterm bullish trend.
AMZN is in a midterm bullish channel and now the price is testing the lower trend line of the channel. Also, we can see the market structure as an Elliot wave structure and price is at the beginning of the bullish 5th wave pattern. That also supports the initiation of a new short-term bullish trend at around the current price.
Considering the daily chart, we can see the price now taking support at the 3342 – 3375 support zone and the next immediate support zone would be 3186 – 3216. We expect the price to have a significant resistance around 3523 – 3555 area and after breaking that area that will reach 4210 in the midterm bullish trend.
That will encounter 3664, 3862 resistance levels on the way towards the 4210 midterm target.
Since AMZN shows short-term and mid-term bullish technicals, it’s good to buy around the current support area at 3342 – 3375.
Hope this was useful for you! Please note that the above content is not an investment advise and shall be considered only for informative purpose.
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