BIGGEST RALLY POTENTIALAmazon (AMZN) is showing signs of potential bullish continuation on the 4-hour timeframe, but confirmation is key before entering a trade. Hereโs a structured breakdown of the setup:
Technical Analysis
1. Key Resistance at $200.50
โข The price is currently consolidating just below this key level.
โข A clear breakout with strong volume would confirm bullish momentum.
โข If the breakout is successful, the next upside targets are $213 and $230.
2. Market Structure:
โข Higher lows indicate increasing buyer interest.
โข If AMZN maintains support above $190, it strengthens the bullish case.
3. Indicators & Confirmation:
โข RSI: Trending upwards, but still below overbought levels, suggesting room for further upside.
Fundamental & Sentiment Factors
โข Tech Sector Strength: The broader tech market (NASDAQ 100) remains strong, supporting large-cap tech stocks.
โข Institutional Accumulation: Increased buying volume from institutions would further validate the breakout.
โข Macroeconomic Catalysts: Any positive data regarding interest rates, consumer spending, or e-commerce growth could fuel additional upside.
Trading Plan
โ
Entry: Wait for a break and retest of $200 before going long.
๐ Stop-Loss: Below $189 (to protect against false breakouts).
๐ฏ Targets: $213-230 (short-term levels).
๐ Risk Management: Position sizing should align with overall risk tolerance.
Patience is key. A confirmed breakout above $200.59 could provide a solid buying opportunity, but failure to hold above this level may lead to further consolidation.