AMZN: Time to BUY amidst the euphoria?
Hello traders and investors! Let’s see how AMZN is doing today! It is going up more than 5% by the time I’m writing this analysis, thanks to the announcement of a 20:1 split. Let’s see what the charts are telling us.
In the 1h chart, it is trading way above the 21 ema, indicating some euphoria, and it is breaking the previous resistance at $ 2,925.71 (red line). However, the bias is still bearish, and we have a purple trend line as the main resistance on AMZN in the short-term, and we don’t see a clear bullish structure. There’s no bull trend yet (no higher highs/lows).
The split announcement came at a very good moment, as AMZN just hit the support at 2,707 (black line) in the daily chart, making this a possible Double Bottom pattern. This is a good sign, but the bearish bias persists.
There’s another resistance that AMZN must break in order to reverse the trend: The 21 ema in the daily chart. The stock must do a clear bullish structure as soon as possible, otherwise the market may understand this just as another bounce to the 21 ema before it drops again – a dead cat bounce.
To me, AMZN must do a clear pivot point in the 1h chart to confirm a reversal in the daily chart, as I never buy during euphoric moments - I always wait for the R/R ratio makes sense. If it closes under the $ 2,925 today it might correct a little bit more, then we’ll see if it is worth to buy it or not.
Either way, AMZN does look interesting, and it is a possible buy soon. However, I see stocks that are more interesting right now. I’ll keep you guys updated, so remember to follow me to not miss any of my future analyses.
In the 1h chart, it is trading way above the 21 ema, indicating some euphoria, and it is breaking the previous resistance at $ 2,925.71 (red line). However, the bias is still bearish, and we have a purple trend line as the main resistance on AMZN in the short-term, and we don’t see a clear bullish structure. There’s no bull trend yet (no higher highs/lows).
The split announcement came at a very good moment, as AMZN just hit the support at 2,707 (black line) in the daily chart, making this a possible Double Bottom pattern. This is a good sign, but the bearish bias persists.
There’s another resistance that AMZN must break in order to reverse the trend: The 21 ema in the daily chart. The stock must do a clear bullish structure as soon as possible, otherwise the market may understand this just as another bounce to the 21 ema before it drops again – a dead cat bounce.
To me, AMZN must do a clear pivot point in the 1h chart to confirm a reversal in the daily chart, as I never buy during euphoric moments - I always wait for the R/R ratio makes sense. If it closes under the $ 2,925 today it might correct a little bit more, then we’ll see if it is worth to buy it or not.
Either way, AMZN does look interesting, and it is a possible buy soon. However, I see stocks that are more interesting right now. I’ll keep you guys updated, so remember to follow me to not miss any of my future analyses.
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