AMZN Swing Trade Tomorrow 7/1/2024Amazon (AMZN) on a 15-minute timeframe, here's a detailed technical analysis for a potential swing trade:
Chart Overview:
Current Price Action:
The current price is around $193.00.
The stock has recently experienced a downward movement after reaching a high of around $204.00.
Volume Profile:
Point of Control (POC): $193.00. This indicates a high volume area where a lot of trading activity has occurred.
Value Area High (VAH): $199.50.
Value Area Low (VAL): $193.30.
The POC and VAL are very close to the current price, indicating strong support around these levels.
Support and Resistance Levels:
Support: $193.00 and $192.49.
Resistance: $199.50 and $199.83.
Trendlines:
There is a descending trendline indicating the recent downtrend.
Indicators:
MACD: The MACD appears to be in a bearish crossover below the signal line, indicating bearish momentum.
Volume: There seems to be a spike in volume during the recent downward movement, indicating strong selling pressure.
Analysis:
Support and Resistance:
The current price is near the POC and VAL, which should provide strong support around the $193.00 level.
If the price holds above this level, we could see a potential rebound.
Resistance is around $199.50 - $199.83, which will be a significant level to break for any upward movement.
Potential Scenarios:
Bullish Scenario: If the price holds above $193.00 and breaks above the descending trendline, we could see a move towards the resistance levels at $199.50 and possibly $199.83.
Bearish Scenario: If the price breaks below $193.00, the next support level is $192.49. A break below this could lead to further downside.
Trading Plan:
Long Trade:
Entry: Around $193.00 - $193.30.
Target: $199.50 (first target), $199.83 (second target).
Stop Loss: Below $192.49 to manage risk.
Short Trade:
Entry: Below $192.49.
Target: Next support levels (not clearly indicated on the chart but could be extrapolated from previous price action).
Stop Loss: Above $193.30 to manage risk.
Conclusion:
The key level to watch is the $193.00 support. If this level holds, there could be a potential rebound towards the $199.50 - $199.83 resistance levels. If it breaks, we could see further downside. Always ensure to use stop losses to manage risk effectively.
