AMAZON is in a strong bullish momentum for the mid and short-term. The price saw a decent recovery from its dip to $82.26 and had gained almost 53% since.
- AMZN is down 1.27 in the last trading session
- AMZN has followed a bullish price action since the beginning of this year
AMZN is trading at $125.49 and can be seen riding a wave of daily 9 and 15 EMA. This indicates that the buyers are comfortable buying the stock at higher prices. This rally started gaining momentum as the price managed to break above 200 EMA and continued the move up with a proper retest.
The Daily chart shows strong buying
![AMAZON Technical Analysis](https://crypto-sunday.com/wp-content/uploads/2023/07/AMAZON-Technical-Analysis-1024x483.webp)
The Daily chart draws a picture that shows the bulls are buying into the dips. This keeps pushing the price to the higher side. At present, the price ran into a minor resistance at $128.38. This might lead to a pullback or some consolidation. The bulls aren’t afraid of buying as there is no major resistance.
The next major pitstop will be at $142. The current market trajectory is increasing the probability of the price hitting $142 which is almost 12% from here. On the downside, the bulls will be looking to defend to the level of $120.41. This level is expected to witness a good amount of buying. If the support shows signs of weakness, the market must get ready for a downhill ride of almost 8%. This will lead the price to its daily 200 EMA and the support level of $109.
The 4H chart shows the probability of a correction
![AMAZON Technical](https://crypto-sunday.com/wp-content/uploads/2023/07/AMAZON-Technical-1024x483.webp)
The overall trend is bullish for Amazon for the short and mid-term. However, the 4h chart is showing a decrease in buying momentum as the price met a minor resistance.
This could signal a minor pullback before the market continues its rally. The weakness can be seen in RSI as the values are declining.
Another observation conveys that the price is riding on an ascending trendline which makes it a significant support. Bears are watching for the breakdown of this support as it could slide down the prices by 13%. The first line of defense will be the level of $120.41 as discussed earlier.
RSI:
The RSI indicator is currently at 56.90 and the RSI has crossed the MA line towards the downside. This is a sign of bearish to sideways market condition.
MACD:
The MACD indicator made a bearish crossover. The MACD line is still above the 0 level so the bears need to be careful as the market can still turn bullish
200 EMA:
As observed, on the 4hr, the price is trading above the 200 EMA(exponential moving average) which acts as a significant support. This is a clear indication of an uptrend where the buyers are in control and for a trend reversal, the price must break and trade below the 200 EMA.
Technical levels:
Support Levels: $120.41 – Support 1
$109.10 – Support 1
Current Price: $125.49
Resistance Levels: $128.38 – Resistance 1
$142.36 – Resistance 2
Conclusion :
Amazon appears to be bullish in the short and mid-term. The price is taking the support from a trend line along with the Daily 9 and 15 EMA. Such price action is indicating at a probability that the price might reach up to $142. It is important to watch the support levels as they could prove to be excellent buying points. But also need to watch for any breakdown as the price might try to correct itself after a moderate uptrend.