AMZN Technical Analysis for Trading and GEX Option. Jan . 28Technical Analysis (TA):
* Trend: AMZN has shown a strong recovery from its prior dip, breaking above the downward resistance line. The recent upward momentum has pushed the price closer to the key resistance zone of $236.40.
* MACD: Positive crossover indicates potential upward momentum continuation, but histogram strength shows signs of plateauing.
* Stoch RSI: Overbought at 96.94, suggesting the potential for a pullback or consolidation in the near term.
Key Levels:
* Resistance:
* $236.40: Recent swing high and breakout level to monitor.
* $240.00: Psychological and potential gamma resistance area.
* Support:
* $227.50: First support level near consolidation prior to breakout.
* $222.50: Stronger support aligning with prior accumulation.
* $192.50: HVL and key put support zone.
GEX Analysis:
* Gamma Levels:
* Highest Positive NETGEX: $236. This level is acting as a strong resistance zone.
* Gamma Walls:
* 2nd CALL Wall: $240.
* 2nd PUT Wall: $222.50, highlighting strong put protection below.
* Highest PUT Support: $192.50.
* Options Sentiment:
* Implied Volatility (IVR): 62.8 (high, signaling caution for option buyers).
* Call-to-Put Ratio: Skewed bullish with Calls at 16.6% dominance.
Scenarios:
1. Bullish:
* Entry: Above $237 (confirmed breakout).
* Target: $240-$245.
* Stop-Loss: Below $233 to protect against false breakouts.
2. Bearish:
* Entry: Below $227.
* Target: $222.50-$220.
* Stop-Loss: Above $230.
Action Plan:
Monitor the $236.40 breakout or rejection closely. The IV levels suggest attractive premium selling opportunities, especially with resistance-heavy zones.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always perform your due diligence before trading.
