Medium-term technical outlook on Amazon.com (AMZN)
click to enlarge charts
Key Levels (1 to 3 weeks)
Intermediate resistance: 1771.90
Pivot (key resistance): 1855.30
Supports: 1692.70 (trigger) & 1585.60/1547
Next resistance: 2035.80/2050.50
Directional Bias (1 to 3 weeks)
Bearish bias below 1855.30 key medium-term pivotal resistance and a break below 1692.70 may see a further potential down move to target the next support at 1585.60/1547.00 within a major range configuration in place since 24 Dec 2018 low
On the other hand, a clearance with a daily close above 1855.30 invalidates the bearish scenario for a push up to retest its major range resistance/all-time high at 2035.80/2050.50.
- Since 11 Jul 2019, the price action of AMZN has started to show signs of weakness as it evolves into a series of “lower highs” within a major range configuration in place since 24 Dec 2018 low.
- Since its 03 June 2019 swing low area of 1692.70, AMZN has managed to hold at this level twice on 03 Oct and 25 Oct 2019 after its prior push down in price action. Interestingly, recent price action’s momentum has started to favour the bears as the daily RSI oscillator has staged a breakdown below a significant corresponding ascending support.
- The next significant medium-term support rests t the 1585.60/1547.00 zone which is defined by the swing low area of 08 Feb/08 Mar 2019, lower boundary of the descending channel from 11 Jul 2019 high and a Fibonacci retracement/expansion cluster.
- Relative strength analysis from the ration charts of AMZN against the market (S&P 500) and its sector (Consumer Discretionary) are still advocating underperformance of AMZN.
Charts are from eSignal
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.