Technical Analysis for AMZN with GEX - Dec. 18, 2024
With the broader market experiencing significant declines, Amazon (AMZN) has been no exception. Today’s drop marks a critical juncture for the stock, with implications for both short-term traders and long-term investors. Let’s dive into the technicals to uncover potential opportunities and risks.
Market Structure Analysis:
* Trend: AMZN broke below its ascending channel, confirming bearish momentum.
* Volume: A significant spike in sell volume indicates strong bearish sentiment.
* Sentiment: Current price action reflects uncertainty, with the market awaiting stability post-FOMC statements.
Supply and Demand Zones:
* Supply Zone: $227.50 – $230.00
* Demand Zone: $212.00 – $215.00
* AMZN has tested the $220.00 level, which coincides with a critical demand zone. Failure to hold here could lead to further downside.
Order Blocks and Support/Resistance:
* Key Resistance Levels:
* $225.00 (near-term resistance)
* $230.00 (major supply zone)
* Key Support Levels:
* $217.50 (recent low and demand level)
* $212.00 (strong support, aligns with prior consolidation zones)
* $200.00 (psychological level)
Key Indicators:
* EMA (9/21): The 9 EMA ($224.00) has crossed below the 21 EMA ($227.00), signaling bearish momentum.
* MACD: Bearish crossover with momentum accelerating to the downside.
* RSI: At 35, indicating the stock is approaching oversold territory.
Options Flow and Gamma Exposure (GEX):
* Call Walls: Significant resistance at $230.00 and $235.00.
* Put Walls: Strong support at $220.00 and $212.00.
* IVR (Implied Volatility Rank): 32.5, indicating moderately elevated volatility.
* GEX Insights:
* Negative gamma suggests potential for larger price swings.
* Put dominance indicates bearish sentiment.
Scalping vs Swing Outlook:
* Scalping:
* Focus on quick trades between $217.50 (support) and $225.00 (resistance).
* Use tight stops below $217.00 for risk management.
* Swing Trading:
* Potential entry at $212.00 with a stop-loss at $209.00 and targets at $225.00 and $230.00.
* If the $220.00 level holds, monitor for bullish reversals.
Actionable Suggestions:
1. Short-term bearish play:
* Entry: Below $220.00
* Target: $215.00
* Stop-loss: $222.00
2. Bounce trade from support:
* Entry: $212.00
* Target: $225.00
* Stop-loss: $209.00
3. Breakout above resistance:
* Entry: Above $230.00
* Target: $235.00
* Stop-loss: $227.00
Conclusion:
Amazon is at a critical juncture as it battles strong bearish sentiment. Key levels at $220.00 and $212.00 will determine the next directional move. Traders should remain cautious and use tight risk management in these volatile conditions.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
Market Structure Analysis:
* Trend: AMZN broke below its ascending channel, confirming bearish momentum.
* Volume: A significant spike in sell volume indicates strong bearish sentiment.
* Sentiment: Current price action reflects uncertainty, with the market awaiting stability post-FOMC statements.
Supply and Demand Zones:
* Supply Zone: $227.50 – $230.00
* Demand Zone: $212.00 – $215.00
* AMZN has tested the $220.00 level, which coincides with a critical demand zone. Failure to hold here could lead to further downside.
Order Blocks and Support/Resistance:
* Key Resistance Levels:
* $225.00 (near-term resistance)
* $230.00 (major supply zone)
* Key Support Levels:
* $217.50 (recent low and demand level)
* $212.00 (strong support, aligns with prior consolidation zones)
* $200.00 (psychological level)
Key Indicators:
* EMA (9/21): The 9 EMA ($224.00) has crossed below the 21 EMA ($227.00), signaling bearish momentum.
* MACD: Bearish crossover with momentum accelerating to the downside.
* RSI: At 35, indicating the stock is approaching oversold territory.
Options Flow and Gamma Exposure (GEX):
* Call Walls: Significant resistance at $230.00 and $235.00.
* Put Walls: Strong support at $220.00 and $212.00.
* IVR (Implied Volatility Rank): 32.5, indicating moderately elevated volatility.
* GEX Insights:
* Negative gamma suggests potential for larger price swings.
* Put dominance indicates bearish sentiment.
Scalping vs Swing Outlook:
* Scalping:
* Focus on quick trades between $217.50 (support) and $225.00 (resistance).
* Use tight stops below $217.00 for risk management.
* Swing Trading:
* Potential entry at $212.00 with a stop-loss at $209.00 and targets at $225.00 and $230.00.
* If the $220.00 level holds, monitor for bullish reversals.
Actionable Suggestions:
1. Short-term bearish play:
* Entry: Below $220.00
* Target: $215.00
* Stop-loss: $222.00
2. Bounce trade from support:
* Entry: $212.00
* Target: $225.00
* Stop-loss: $209.00
3. Breakout above resistance:
* Entry: Above $230.00
* Target: $235.00
* Stop-loss: $227.00
Conclusion:
Amazon is at a critical juncture as it battles strong bearish sentiment. Key levels at $220.00 and $212.00 will determine the next directional move. Traders should remain cautious and use tight risk management in these volatile conditions.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
Disclaimer
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