AMZN Bouncing Off Lows! Can Bulls Reclaim $220?Technical Analysis for February 27, 2025:
1. Current Price Action:
* AMZN bounced off $204.16 after a strong downtrend, now consolidating near $214-$215.
* A falling wedge breakout attempt is forming, with resistance at $217-$220.
* Volume indicates buyers stepping in at lower levels.
2. Key Levels to Watch:
* Support: $210 (POC), $205, $200 (Major downside risk if broken).
* Resistance: $217-$220 (Breakout confirmation zone), $226-$230 (Major resistance walls).
* Upside Targets: $225, $230.52.
3. Indicators Analysis:
* MACD: Attempting a bullish crossover, momentum still weak.
* Stoch RSI: Moving higher, indicating upside potential.
* Volume Profile: Price needs to hold above $214 for a continuation move.
GEX & Option Strategy for Tomorrow and the Week:
1. Gamma Exposure (GEX) Insights:
* Call Walls: $220, $225, $230 → Resistance areas; breakouts could trigger a gamma squeeze.
* Put Walls: $205, $200 → Key support zones.
2. IV & Sentiment:
* IVR: 35.9 (low)
* IVx Avg: 35.4 (stable) → Neutral volatility environment.
* Call Positioning: 6.7% bullish sentiment (weaker than other stocks).
* GEX Sentiment: Slightly bullish; if $220 breaks, more upside could follow.
3. Trading Suggestions:
* Bullish Setup: If AMZN reclaims $217-$220, consider long positions targeting $225-$230, with a stop at $212.
* Bearish Setup: If AMZN rejects $220, short opportunities targeting $210-$205, stop at $223.
* Options Play: Selling put spreads at $205 support or call spreads near $230 resistance.
📌 My Thoughts & Suggestion:
* AMZN is showing signs of strength, but it needs to break and hold $220 to confirm bullish momentum.
* Failure at $217-$220 could lead to a pullback to $210 or even $205.
* IV is low, making long options attractive for directional bets.
⚠️ Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading. 🚀
