AMZN Approaching Key Resistance: Potential Breakout. Nov. 14, 24Amazon (AMZN) has been climbing steadily and is now testing a significant resistance level. Let’s dive into the supply and demand zones, price action, MACD, volume, and EMA indicators to spot actionable levels for scalping and swing trades.
Market Structure Overview:
AMZN is in an uptrend, approaching a strong resistance level around $215. The recent bullish momentum suggests a potential breakout, but with resistance nearby, a pullback could also occur. AMZN’s positioning near its highs makes this a critical area to watch.
Key Zones:
Demand Zone (Support): $210.74 - $212.00
This area has consistently attracted buyers, providing immediate support. If AMZN retraces to this level and shows signs of holding, it could be a great entry point for a long position.
Supply Zone (Resistance): $214.30 - $215.09
This range represents resistance, where previous attempts to break higher have faced selling pressure. A breakout above $215 with volume would signal bullish continuation, while rejection at this level could result in a pullback.
Order Block Insight:
An order block is visible around $212-$213, where institutional interest seems active. Reactions at this level could guide short-term trades, especially for scalpers watching for breakouts or bounces.
Support & Resistance with Entry, Exit, and Stop Suggestions:
Immediate Support: $212
Long Entry: Around $212 if there’s a bounce, targeting exits at $214 and $215.
Stop-Loss: Below $210 to manage risk if AMZN breaks lower.
Immediate Resistance: $215
Short Entry: Near $215 if resistance holds, with targets at $213 and $212.
Stop-Loss: Above $216 to limit potential losses if a breakout occurs.
Swing Trade Setup:
Swing Long: Above $215.09, targeting $218 and $220 if momentum sustains.
Stop-Loss: Below $214 to control risk if the breakout fails.
Swing Short: Below $210, aiming for $205 as the next support level.
Stop-Loss: Above $212 to manage risk if AMZN reverses.
Price Action Insights:
AMZN’s recent move toward $215 reflects strong buying interest, but the price action shows a slight hesitation near this level. A confirmed breakout above this range could signal a bullish continuation, while a rejection could see the stock retrace to the $212 support zone.
MACD and Volume Analysis:
MACD: The MACD shows a bullish crossover with a positive histogram, indicating upward momentum. This aligns with the potential for a breakout if AMZN clears $215 with strong volume.
Volume: Volume has increased during the recent uptrend, supporting the price action. Higher-than-average volume near $215 would add confidence to a breakout scenario. Low volume, however, may result in a lack of follow-through, increasing the chance of a pullback.
9 EMA & 21 EMA Analysis:
9 EMA: AMZN is trading above the 9 EMA, indicating short-term bullish momentum. If the price stays above this level, it suggests continued strength, making it a good signal for scalpers.
21 EMA: The 21 EMA is below the 9 EMA, confirming the uptrend and providing additional support. As long as AMZN remains above both EMAs, bullish momentum should persist.
Scalping & Swing Outlook:
Scalping: Look for quick long entries around $212 for bounces toward $214 or $215. For short scalps, $215 provides a resistance zone to play with a pullback toward $213. Tight stops are recommended given the current volatility.
Swing: A breakout above $215 with volume would favor swing longs, aiming for higher price targets. On the other hand, a break below $210 would open the door for short opportunities targeting $205.
Directional Thoughts & Suggestions:
AMZN’s current setup suggests a slight bullish bias if it can break through $215. My suggestion is to watch for a potential breakout above $215.09, targeting $218 if momentum holds. However, if AMZN fails to break this level and volume dries up, a short-term pullback toward $212 or $210 becomes more likely.
Conclusion:
AMZN is at a critical resistance level, with setups for both bullish and bearish moves. Scalpers and swing traders should monitor the price action and volume closely around $215. Keeping tight stops and observing reactions at these levels will be crucial to managing risk effectively.
Disclaimer: This analysis is for educational purposes only and not financial advice. Please conduct your own research and consult with a financial advisor. Trading involves risks, and past performance does not guarantee future results.
