Amazon: Riding the E-Commerce and Cloud Wave
Updated
Amazon is currently showing promising signs as it forms the right side of its base, presenting an excellent setup for long-term investors. With strong revenue streams from e-commerce and Amazon Web Services (AWS), the company remains a dominant force in multiple sectors. This diverse business model positions Amazon for sustained growth, even amid market fluctuations.
Technical Overview:
Recent price action shows Amazon bouncing off a strong support level around $182.38, with its 21-day EMA acting as a key indicator of momentum. As it approaches the $200 mark, investors should keep a close eye on these critical levels.
Profit Target: Initial target at $201.20, with further potential upside to $210 if momentum continues.
Stop Loss: Set just below the $182.38 support level to manage risk.
Indicator Insights:
Using tools like the MTF Squeeze Analyzer - [tradeviZion] and MTF SqzMom [tradeviZion], we notice a squeeze firing on multiple lower timeframes, signaling that volatility is likely to increase. The 4Hour and Weekly timeframe shows a build-up in momentum, suggesting that this could propel Amazon toward the $200+ range. Monitoring these momentum shifts provides an edge in timing entry and exit points for the trade.
Momentum and Market Overview:
With the Larry Williams Valuation Index [tradeviZion] Indicator, we observe steady momentum on both the daily and weekly charts, supporting a positive outlook. The readings show consistent strength in Amazon’s price action. Notably, the stock has not yet reached its overvalued level, signaling a fair entry point for buyers. This provides confidence that Amazon is trading within a favorable range, with the market continuing to support buying interest.
Additionally, the general market is in an uptrend, as confirmed by the IBD Market School [tradeviZion], with 100% exposure currently active and the Power Trend ON. This signals a favorable environment for growth stocks like Amazon.
Final Thoughts:
This trade idea leverages both fundamental strength and technical precision, supported by our indicators available in the TradeVizion toolset. By combining a clear understanding of Amazon’s market dominance with insights from these smart tools, this setup offers a well-rounded opportunity for both short-term gains and long-term growth.
Feel free to explore our scripts, designed to enhance your market understanding without overwhelming you with unnecessary complexity. Whether you’re trading breakouts or managing risk, having the right tools in your corner can make all the difference.
Technical Overview:
Recent price action shows Amazon bouncing off a strong support level around $182.38, with its 21-day EMA acting as a key indicator of momentum. As it approaches the $200 mark, investors should keep a close eye on these critical levels.
Profit Target: Initial target at $201.20, with further potential upside to $210 if momentum continues.
Stop Loss: Set just below the $182.38 support level to manage risk.
Indicator Insights:
Using tools like the MTF Squeeze Analyzer - [tradeviZion] and MTF SqzMom [tradeviZion], we notice a squeeze firing on multiple lower timeframes, signaling that volatility is likely to increase. The 4Hour and Weekly timeframe shows a build-up in momentum, suggesting that this could propel Amazon toward the $200+ range. Monitoring these momentum shifts provides an edge in timing entry and exit points for the trade.
Momentum and Market Overview:
With the Larry Williams Valuation Index [tradeviZion] Indicator, we observe steady momentum on both the daily and weekly charts, supporting a positive outlook. The readings show consistent strength in Amazon’s price action. Notably, the stock has not yet reached its overvalued level, signaling a fair entry point for buyers. This provides confidence that Amazon is trading within a favorable range, with the market continuing to support buying interest.
Additionally, the general market is in an uptrend, as confirmed by the IBD Market School [tradeviZion], with 100% exposure currently active and the Power Trend ON. This signals a favorable environment for growth stocks like Amazon.
Final Thoughts:
This trade idea leverages both fundamental strength and technical precision, supported by our indicators available in the TradeVizion toolset. By combining a clear understanding of Amazon’s market dominance with insights from these smart tools, this setup offers a well-rounded opportunity for both short-term gains and long-term growth.
Feel free to explore our scripts, designed to enhance your market understanding without overwhelming you with unnecessary complexity. Whether you’re trading breakouts or managing risk, having the right tools in your corner can make all the difference.
Trade closed: target reached
Trade Status Update: Targets Achieved - Position Closed
The Amazon (AMZN) trade idea from October 15th has successfully reached both target levels, warranting a position closure. Here's the final trade summary:
Target Achievement:
Initial Target: $201.20 ✓ (Reached)
Extended Target: $210.00 ✓ (Reached)
Current Price: $204.61
Performance Analysis:
The stock has performed exactly as anticipated in the original analysis, breaking through both target levels with strong momentum. The price action validated our technical setup, with AMZN maintaining strength above the key support levels throughout the move.
Key Achievements:
Entry Range: $182-185 area
Total Move: Approximately +15% from entry
Risk Management: Stop loss at $182.38 was never threatened
Closing Rationale:
With both profit targets achieved and the stock showing signs of resistance near the $205 level, it's prudent to close this trade idea. The stock has fulfilled our technical objectives and reached fair valuation levels based on the original analysis.
Final Note:
This trade exemplified the importance of patience and proper target setting. The combination of strong fundamentals (AWS and e-commerce growth) and technical analysis provided an excellent risk-reward setup that played out as anticipated. Trade idea status: CLOSED - TARGETS ACHIEVED
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