AMZN Approaches Resistance! Can Bulls Push Through? Jan. 14Technical Analysis Overview:
4-Hour Chart:
* Trend: AMZN has recently rebounded from its lower trendline, showing early signs of stabilization.
* Indicators:
* EMA (9/21): Price is testing the 9 EMA, while the 21 EMA is still above, acting as dynamic resistance.
* MACD: Displays a potential bullish crossover, but momentum remains weak for now.
30-Minute Chart:
* Price Action:
* Consolidation near $217-$219 indicates a battle between buyers and sellers.
* Resistance lies around $220, coinciding with the highest positive NETGEX level.
* Volume: Volume remains subdued, signaling the need for stronger participation to break resistance.
Key Levels to Watch:
Support Levels:
* $217: Immediate support and gamma level.
* $212.5: Strong PUT support zone.
Resistance Levels:
* $220: Key gamma resistance (highest positive NETGEX level).
* $227.5: Next resistance level, coinciding with GEX7.
* $230-$233: Strong CALL walls, marking major upside barriers.
GEX Insights:
Key Gamma Levels:
* Positive Gamma Walls (Resistance):
* $220: Highest positive NETGEX and immediate resistance.
* $227.5: 57.28% GEX7.
* $230: 83.61% (2nd CALL Wall).
* Negative Gamma Levels (Support):
* $212.5: Significant PUT support (-16.14% GEX).
* $202.5: 3rd PUT Wall (-4.5% GEX).
Options Metrics:
* IVR: 66.2, signaling moderate implied volatility.
* IVx: 37.5, slightly below average, suggesting mild price fluctuations.
* Call/Put Bias: Calls represent 12.3%, highlighting a neutral to bearish sentiment.
Trade Scenarios:
Bullish Scenario:
* Entry: Above $220 with volume confirmation.
* Target: $227.5-$230.
* Stop-Loss: Below $217 to control risk.
Bearish Scenario:
* Entry: Rejection at $220 or failure to sustain above.
* Target: $212.5-$210.
* Stop-Loss: Above $227.5 to avoid extended losses.
Directional Bias:
* The near-term outlook for AMZN hinges on whether it can decisively break above $220. Bulls need strong volume to overcome gamma resistance, while bears will likely defend this level aggressively.
Conclusion:
AMZN is at a critical inflection point around $220. Traders should watch for a breakout or rejection at this level to determine the next move. The gamma landscape highlights $227.5 and $230 as significant resistance zones, with $212.5 providing strong support.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct your research and trade responsibly.
