AMAZON Pair : AMZN - AMAZON
Description :
Rising Wedge as an Corrective Pattern in Long Time Frame and Short Time Frame
Break of Structure
RSI - Divergence
Completed " 12345 " Impulsive Waves
Resistance Level
AMZN trade ideas
AMZN longNice clean sideways movement right under the same resistance line of the last few months. Could see a return to momentum on a break above this line around 189.
AMZN updateThe inverse head and shoulders on the AMZN weekly looks to be playing out. The attack of the neckline has begun, this projects to over 210$. With QQQ weakness impending, this could still play out since Amazon as not run as hard as the other big tech recently. Otherwise it may take a few tests for this to breakout.
Amazon Will Soon See Its All Time High AgainReasons why we are bullish for Amazon:
stable fundamentals that point to constant growth
healthy macroeconomic environment with falling inflation
clear stabilization of the share price within a bullish order block with bullish price action
strong performance of the US indices, especially the NASDAQ
Amz ready to breakoutAmazon all set to breakout from its all time high resistance
Buy at breakout confirmation at 191 on daily
Very good risk to reward ratio
Dyor
the triple top debateSo even though I don't think the correction will be super low, I do see it bouncing off the 100, but that's only at the mid-180s level, like it has done in the past.
Amazon (AMZN): Preparing for a CorrectionWe need to zoom out significantly to get a clearer picture of Amazon. The stock has been in a maximal zone between $177 and $214. For the past three months, it has been ranging between $177 and $188, at the top of Wave B.
Current Situation:
Elliott Wave Analysis: We believe a substantial drop is necessary to complete the overarching Wave (2). The parallel trend channel that was broken with the completion of Wave 5 should be revisited to finalize Wave (2). This would be a textbook Elliott Wave behavior - breakout of a trend channel to complete the wave 5 as a fakeout and a deeper correction to flush some participants out of the market and into slight panic mode.
Target Range: We are targeting a range between $131 and $103 as a likely zone for this correction to end.
Ranging Behavior: Amazon has been ranging for three months, indicating consolidation before a potential move.
Strategy:
Observation Mode: We are currently observing the stock for signs of weakness.
Limit Order: A limit order will be considered if the stock begins to show significant downside momentum. If and when we decide to place a limit order, we will issue a detailed market report.
Amazon's current range suggests consolidation, but we expect a deeper correction to complete Wave (2) rather than a breakout to the upside. We are monitoring for signs of weakness and will place a limit order if conditions are met. For now, there is no immediate need to place an order. Further updates will be provided as the situation evolves.
SPY Q2 2024SPY ETF Q2 2024 view with RSI and 200, 100, 50, 20 VWMA indicators.
SPY
GOOGL
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AMZN
AAPL
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Finding Confluences Increase Trade ProbabilitiesFinding confluences in securities always increases chances of a successful trade. In this example, FEMA (Custom Fragmented Exponential Moving Average) is stacked correctly, the price bounced off FEMA on the pullback, and the pullback also matched Fib 0.382 level. Expecting price to reach $190.98, as that was prior high level, and it also matched the Fibonacci 1.272 extension. Then, expecting $195.64, which is Fib 1.618 extension, and Keltner Channel upper band(upper green line) is estimating price to reach that level before reverting back to the mean.
Analysis of Amazon (AMZN) Price Action: Short to Medium Term OutAnalysis of Amazon (AMZN) Price Action: Short to Medium Term Outlook
Upon examining the hourly timeline for Amazon (AMZN), it becomes evident that the stock is currently testing a significant support level that has been established since late April. This support line has proven resilient, having been touched multiple times over the past few weeks.
Technical Analysis Overview
Support Line Analysis: The repeated tests of the support line suggest that it is a robust level where buyers have consistently stepped in to prevent further declines. This indicates strong buying interest whenever the stock approaches this zone.
Bullish Signal: The bounce off this support line in the recent price action signals a potential bullish reversal in the short to medium term. This pattern often suggests that buyers are willing to enter at these levels, viewing the current price as attractive for accumulation.
Volume Confirmation: It would be prudent to confirm this potential reversal with a look at trading volumes. Ideally, an increase in volume accompanying the bounce off support would strengthen the bullish case, indicating conviction among buyers.
Resistance Levels: As the stock attempts to bounce, the next critical hurdle will be overcoming nearby resistance levels. These levels could coincide with previous highs or key moving averages, which may act as barriers in the short term.
Market Sentiment and Economic Indicators
Macro Environment: Understanding the broader market sentiment and economic indicators can provide context. Factors such as consumer spending trends, economic data releases, and sector-specific news can impact Amazon’s stock performance.
Competitive Landscape: Monitoring developments among Amazon’s competitors and within the e-commerce sector can also offer insights into future price movements.
Conclusion
In conclusion, the current technical setup on the hourly chart of Amazon (AMZN) suggests a bullish outlook in the short to medium term. The repeated testing and bounce off the strong support line since late April indicate resilience and potential accumulation by market participants. However, traders and investors should remain vigilant for any signs of reversal or failure to sustain above resistance levels. Confirmation through volume and market sentiment analysis will be crucial in validating this bullish scenario.
This analysis provides a foundation for decision-making but should be complemented with broader market analysis and risk management strategies to navigate potential volatility and market uncertainties effectively.
Updated AMZN inverse H&SHere is the weekly view of the AMZN inverse head and shoulders I finished a while ago. I added a demand zone as well. You will note a nice bounce on the 20EMA supporting this idea long-term. My short-term target is still 210$ here. A brief dip into demand and blastoff is my prediction.
-A test of 189$ is needed before the 210$, this is the area of resistance that would allow for price discovery as well
-There is not much resistance until that point
AMZN Flagging MonthlyAMZN has be prepping for a breakout for 3 months now, this prime day could be catalyst for the breakout. We might see 200 soon.
$AMZN
I believe Amazon's stock will retrace to $175 or below for several reasons. Firstly, we've touched the top of the consolidating range at $188 for the third time, suggesting strong resistance at this level. Additionally, there's a bear flag forming on the hourly chart, indicating potential downward momentum. This presents a great buying opportunity when the stock hits the $175 area. Furthermore, with Prime Day coming up next month, I anticipate it will act as a catalyst to drive the stock back up to $200.
Why Amazon's Stock Surge is Just the BeginningAmazon has delivered an impressive performance this year, with its stock appreciating over 20%. Many analysts believe this is just the beginning of a much larger upward trend.
Amazon's business model is undergoing a significant transformation, presenting a unique opportunity for investors. Here are three key insights that make a compelling case for buying Amazon stock now.
Resurgence in Amazon Web Services' Growth
Amazon Web Services (AWS), the company's cloud computing division, is experiencing a strong resurgence. AWS allows clients to rent computing space and run workloads over the cloud, a popular strategy that enables customers to scale computing power as needed. This is particularly relevant as many companies are developing AI models to enhance their operations.
Despite sluggish demand for AWS in 2023 compared to competitors like Google Cloud and Microsoft Azure, the outlook is improving. Amazon's significant investment in Anthropic, a generative AI startup, has equipped AWS with advanced AI tools. CEO Andy Jassy highlighted this in Amazon's Q1 conference call, stating, "We see considerable momentum on the AI front where we've accumulated a multibillion-dollar revenue run rate already."
This positive development is reflected in the financial results. In Q1, AWS saw a 17% year-over-year increase in net sales and an 84% rise in operating income. Another growth catalyst is the end of the optimization trend. Last year, companies focused on cost-cutting, including optimizing cloud computing spending. With this trend now complete, AWS is benefiting from new workloads, rather than declining revenue from reduced workloads.
AWS remains Amazon's most profitable segment, which is crucial for its success. However, other areas of the business are also starting to contribute significantly.
Amazon's Accelerating Cash Generation
While AWS has long been profitable, Amazon's commerce divisions haven't always shared that success. The company had to recover from significant investments in its supply network in 2021 and 2022, which affected its North American division. Additionally, Amazon's international operations have historically been unprofitable, but this is starting to change. In Q1, the international segment posted its first profitable quarter since 2021.
This turnaround has significantly bolstered Amazon's cash generation, which is now gaining momentum.
In the past 12 months, Amazon has generated $50.1 billion in free cash flow (FCF), a stark contrast to the $3.3 billion FCF outflow in Q1 of the previous year. The trends associated with this FCF are equally encouraging.
Historically, the first quarter is weak for Amazon due to high spending in Q4. This pattern results in a relative peak at the start of each new year, followed by a significant decline. This occurred again in 2024, but notably, this was the first year in recent memory that the drawdown did not result in a negative FCF. Additionally, the Q4 peak was the highest it has ever been.
This indicates that Amazon's cash flows are improving and sustainable, which is a positive sign for investors. As Amazon's cash flows increase, the company could initiate a dividend or start repurchasing stock, benefiting long-term investors.
Amazon is Still Below Its Average Valuation
Despite Amazon's significant cash flow growth and improvements across its business, the stock is still undervalued based on its price-to-sales (P/S) ratio. Traditional valuation metrics centered around earnings aren't as useful for Amazon yet, but the P/S ratio indicates that Amazon is valued at levels seen during the post-COVID demand drawdown and before that in 2018.
This suggests that the stock isn't overvalued and could be a reasonable purchase today.
Considering Amazon's growth prospects and increasing FCF, Amazon is an excellent buy right now. There are still many aspects of Amazon's business poised for transformation, and investors will benefit from buying and holding it for the long term.
Previous Idea
Is AMZN Ready to Break $200?Amazon.com Inc. (NASDAQ: AMZN) is demonstrating robust performance amidst a backdrop of market volatility. With its stock currently trading around $187.06 in pre-market action, Amazon is poised for significant movements. Let's dive into a detailed technical analysis to explore potential trading opportunities, leveraging indicators, candlestick patterns, and the latest financial news.
The daily candlestick chart for Amazon displays a notable bullish momentum. The latest candles are trading above key moving averages, including the 10, 20, 50, and 200-day Exponential Moving Averages (EMAs). This bullish engulfing pattern suggests a potential continuation of the upward trend.
The price is trading above the Ichimoku Cloud, indicating a strong bullish trend. The conversion line (blue) is above the base line (red), further confirming the upward momentum. The span A is above span B, reinforcing the bullish outlook. This setup is traditionally a signal to enter long positions.
RSI (14) The Relative Strength Index is at 59.70, indicating that the stock is in neutral territory but leaning towards overbought conditions.
MACD The Moving Average Convergence Divergence (MACD) is positive at 0.20, with the MACD line crossing above the signal line, suggesting a buy.
Stochastic Oscillator At 89.08, it shows the stock is approaching overbought levels but can still sustain upward momentum.
Awesome Oscillator Slightly negative at -0.17 but insignificant to alter the bullish stance significantly.
Amazon’s market capitalization stands at an impressive $1.95 trillion, with a Price to Earnings Ratio (P/E) of 51.76, highlighting investor confidence in its growth potential. The company’s revenue for 2023 is strong, and the forecast suggests continued growth, especially in the cloud computing segment, Amazon Web Services (AWS).
Expansion in AI and Cloud Amazon’s recent initiatives in AI and further expansion in cloud services are creating positive market sentiment. Reports of AWS securing significant new contracts could propel stock prices further.
Consumer Demand Despite broader economic concerns, Amazon’s dominance in e-commerce and its ability to adapt to consumer trends positions it well against competitors.
Amazon’s trading volume is substantial, with an average volume of 40.83 million over the past 30 days, indicating strong investor interest. The recent price action shows a clear breakout above the $185 resistance level, suggesting that the stock could test the $200 psychological level soon.
Resistance Levels (R1, R2, R3) $187.48, $198.50, and $216.33 respectively
Support Levels (S1, S2, S3) $169.64, $162.84, and $145.01 respectively
Trade Strategy and Price Targets
Long Position
Entry Point Consider entering a long position at the current price around $187.06.
Stop Loss Set a stop loss below the recent support level at $182.00 to manage downside risk.
Target Price First target at $200 (R1), and if the bullish momentum continues, look towards $216.33 (R3) as a secondary target.
Short Position
Entry Point Only consider shorting if the price breaks below the $180.67 pivot point.
Stop Loss Place a stop loss at $185.00.
Target Price Initial target at $169.64 (S1), and further downside potential towards $162.84 (S2) if the bearish trend intensifies.
Amazon's stock is currently exhibiting strong bullish signals, supported by technical indicators and positive market sentiment. With a potential breakout above $200, there are compelling opportunities for long positions. However, traders should remain vigilant for any signs of a trend reversal and manage risk through well-placed stop losses.
Resistance break event pointAccording to the idea of AMZN stock, the direction of the stock is upward, which can be analyzed from the perspective shown in the image to enter for profit at the Take Profit point.
"Investors should understand the nature of the product, return conditions, and risks before making investment decisions."
amazon stock on buy postionwe can enter amazon boy but we must keep the stop under the support shown in the graph
Amazon 1 h chart Fibo correction suspected to 183.37-178.64
2 gaps 181.35-182.07 and 181.49 -181.42
178.96 middle angle of Gann
good luck
AMZN BreakoutAMZN had been forming a descending channel/bull flag and had a fakeout below, but quickly recovered and has now closed above. Looking like a great pick if tech stocks continue the bull run this week. My longer term target would be ATH, for shorter term, it may struggle at some of these previous highs.
Amazon - Two trading setups!Hello Traders and Investors, today I will take a look at Amazon.
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Explanation of my video analysis:
In 2020 Amazon stock created massive resistance roughly at the $180 level and started a major correction away from the resistance in 2022. As we are speaking Amazon stock is once again retesting this major resistance level and is therefore at a quite decisive inflection point. Either we will see a breakout or another rejection after which we could then see the overall continuation towards the upside.
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Keep your long term vision,
Philip (BasicTrading)
