Amazon Bullish
Current Market Position
The speaker is analyzing Amazon's stock performance, noting that since August 2024, Amazon has been in an upward channel pattern. While the price action hasn't been consistently dominant on the upside, the support line of this channel has been particularly reliable.
Key Support and Resistance Levels
- **Critical support level**: $216.57
- **Recent resistance**: $219.62 (approximately $220)
- **Lower support level**: $204.79
## Recent Price Action
Amazon's stock recently experienced the following movements:
- Rallied after touching the $216.57 support level
- Later broke below this support
- Reached around $233 before falling back to $216.57
- Created a higher high on a second attempt upward
- Eventually broke below both the $216.57 level and the supporting trend line that had been in place since August
- Found buyers around $204.79
- Rebounded to pierce through $216.57 again, reaching approximately $220
- Fell back to the $216.57 level
- Importantly, has now created a higher low, which the speaker considers significant
## Bullish Outlook
The speaker believes Amazon stock currently has a bullish sentiment. For this bullish trend to continue, three key conditions need to be met:
1. Breaking above $216.57
2. Breaking above $219.62
3. Breaking through the downtrend on the technical indicators
If these conditions are met, the speaker anticipates upward momentum with a double bottom formation, potentially moving beyond the $220-237 range.
## Bearish Alternative
If the stock fails to break through these levels and instead hits the back end of the supporting channel trend line (shown as a black line in their analysis), the speaker believes a significant downward movement could occur.
## Conclusion
The speaker sees a good opportunity to enter a trade now to potentially capture upward momentum, especially if the stock moves past the identified resistance levels. They believe momentum will be strong if the stock can clear these hurdles.
