AMZN: Will Port Strike Affect AMZN? No bias, just based on TA
Current Price Action
AMZN is currently in a downtrend, forming lower highs and lower lows, indicated by the descending channel on the chart.
Price is consolidating around $185.67, which suggests the potential for either a short-term bounce or continued bearish momentum.
Support and Resistance Levels
Resistance Levels:
$189.55 - $190.16: This zone has been a significant resistance area where previous attempts to break higher were rejected. If the price rises, watch for resistance at this zone.
$194.85 - $195.37: Should AMZN see a strong bounce, this area would be the next target, which also aligns with previous peaks.
Support Levels:
$185.67 - $184.66: Immediate support zone, where the price is currently hovering. A break below this level could signal further downside.
$180.00: This is a psychological and technical support level that could attract buyers if AMZN continues to slide.
Entry and Exit Points
Bullish Entry:
If the price manages to break above $190.16 with solid momentum, this could indicate a reversal of the current downtrend, offering a long entry opportunity. Look for confirmation with increased volume.
A possible target for this bullish move would be the resistance at $195.37.
Bearish Entry:
A failure to break above $189.55 and a subsequent rejection or breakdown below $185.67 would present a potential shorting opportunity. The next target would be $184.66 and possibly $180.
Exit Points:
Bullish Exits: Around $190.16, or $195.37 if there’s strong momentum.
Bearish Exits: Targets would be $184.66 or further down at $180.
Suggested Direction for Tomorrow
Bearish Bias: Given the current downward channel and lack of strong bullish indicators, the bias seems to be bearish. If AMZN fails to break through the $189.55 - $190.16 resistance zone, the downtrend is likely to continue.
Bullish Case: If there’s a bounce and AMZN can break above $190.16 with strong volume, it may signal the start of a reversal, targeting the $194.85 level.
