Amazon Inc. (NASDAQ: AMZN) traded lower on Tuesday, after it hit resistance at 3164, slightly below the prior upside support line drawn from the low of September 21st. Currently, the stock is trading, not only below that line, but also below a short-term downside one, taken from the peak of February 2nd. In our view, this keeps the short-term outlook somewhat negative.
That said, in order to get confident on larger declines, we would like to see a dip below Friday’s low of 3038. This will confirm a forthcoming lower low on both the daily and 4-hour charts and may initially pave the way towards the low of November 2nd, at 2950. If that barrier doesn’t hold, then we may experience extensions towards the 2875 territory, marked by the low of September 21st.
Taking a look at our short-term oscillators, we see that the RSI, already below 50, has turned down again, while the MACD, although above its trigger line, lies within its negative territory and shows signs that it could top soon as well. Both indicators suggest that the stock may start gaining more downside speed soon, which enhances the case for further declines.
In order to start examining the bullish case again, we would like to see a strong rebound above 3337. The price would already be well above both the aforementioned diagonal lines and investors may get encouraged to target the peak of February 2nd, at 3425. Another break, above 3425, could see scope for more advances, perhaps towards the 3495 hurdle, defined as a resistance by the high of October 12th.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.