AMZN at a Major Turning Point! Key Reversal or Breakdown?📊 Technical Analysis (TA) for AMZN
* Current Price Action: AMZN is attempting to recover from a downtrend, showing signs of a reversal after hitting the reversal zone near $204-$206. The price has broken out of a falling wedge, signaling a potential short-term upside.
* Key Levels to Watch:
* Resistance 1: $212.50 (Volume Profile POC) – A breakout could confirm bullish momentum.
* Resistance 2: $220 (2nd Call Wall) – Price may slow down or reject here.
* Major Resistance: $225-$230 – A strong resistance area and gamma wall.
* Support 1: $210 – If AMZN pulls back, this is the first key level to hold.
* Support 2: $205 (Put Support) – A breakdown below this would signal further downside risk.
* Critical Breakdown Level: $200 – Losing this level could trigger a larger sell-off.
📌 Indicators:
* MACD: Bullish crossover, indicating early momentum shift.
* Stochastic RSI: Overbought near 99, suggesting a possible short-term pullback.
🔎 Options Flow & GEX Analysis
* GEX (Gamma Exposure) Key Levels:
* 88.08% Call Resistance at $220 → Breaking above could fuel upside momentum.
* 71.12% 3rd Call Wall at $230 → A strong gamma resistance area.
* Highest Positive NetGEX / Call Resistance at $225 → Dealers could hedge against further upside.
* Put Wall Support at $205 → A strong support area from options positioning.
* 3rd Put Wall at $200 → Breaking this level could accelerate downside volatility.
📌 IV & Sentiment:
* IV Rank (IVR): 41.7 → Moderate implied volatility, options are reasonably priced.
* IVx Avg: 41.4 → Steady, indicating a stable options environment.
* Options Sentiment: Calls = 3.3% → Very low bullish bias in options flow.
📈 Trade Scenarios & Strategy
📌 Bullish Scenario (Breakout Play):
* Entry: Above $212.50 with strong volume.
* Target: $220, then $225.
* Stop Loss: Below $210.
📌 Bearish Scenario (Rejection & Breakdown):
* Entry: Below $210.
* Target: $205 or $200.
* Stop Loss: Above $212.50.
🔥 Final Thoughts & Suggestion
* AMZN is testing a key reversal zone. A breakout above $212.50 could push it toward $220+.
* If it fails to hold $210, expect a retest of $205-$200, which is a major support zone.
* Volume and options flow will be key – if gamma levels start unwinding, expect volatility to spike!
🚨 Disclaimer: This analysis is for educational purposes only. Trade responsibly and manage risk! 🚨
