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AMAZON: levels to watch.

August 1, 2019

The major US stock indices are struggling near all time Highs and, so too, is Amazon, AMZN. The $2,000 is shaping up as a major psychological level for the stock and there will no doubt be talk of a bearish reversal Double Top. In this post I assess the various time fame charts of Amazon and note the levels I think are worth monitoring that may be of use to both long-term and short-term traders.

 

AMZN weekly: price action is consolidating in a kind of Bull Flag pattern around the key $2,000 level but there will be talk of a bearish-reversal Double Top so keep an eye out for any new trend line breakout: up or down:

 

 

AMZN weekly + fibs: any bearish breakdown would bring the $1,000 level back into ‘worst case scenario’ focus as this is near previous S/R and the weekly 61.8% fib of the entire 2015-2019 Swing High move:

 

 

AMZN weekly + Bull Flag: However, the weekly chart does have a bit of a Bull Flag look to it. As technical breakout theory goes, any Bull Flag breakout might be expected to extend the same amount as the Flag pole. In this case, the Flag pole is worth $1,700 so this is one Bull Flag worth monitoring!

 

 

AMZN daily: watch for any new trend line breakout. Price is still above the daily Cloud for now but watch for any breakdown here:

 

 

AMZN 4hr: price action is now below the 4hr Cloud which is short-term bearish:

 

 

AMZN 4hr + fibs: any break and hold below trend line support would bring the $1,600 level back into focus as this is previous S/R and near the 4hr chart’s 61.8% fib of the recent 2019 Swing High move:

 

 

AMZN 15 min: price action has been in a down trend since peaking at $2,000.

 

 

AMZN 15 min: any bullish recovery from current levels would bring a bear trend line into focus, and, any bullish breakout of that resistance would bring the $1,950 level into focus as this is previous S/R and near the 61.8% fib of the recent Swing Low move:

 

 

Summary: Amazon has enjoyed a massive rally since the start of 2016 but has stalled at the major $2,000 level. Price action is currently shaping in a potential Bull Flag giving traders trend lines to monitor for any new breakout. In this post I have noted key bullish and bearish S/R levels and these are summarised below:

 

Bearish targets:

  • $1,600: the 4hr 61.8% fib.
  • $1,000: the weekly 61.8% fib.

 

Bullish Targets:

  • $1,950: the 15 min 61.8% fib.
  • $2,000: a psychological S/R level.