Hello traders and investors! Let’s see how AMZN is doing today!
Like many other stocks, it seems we are having a Double Top chart pattern, but I see more than that.
Keep in mind that the momentum is bullish, so the 21 ema is going up along with the price, offering a dynamic support level for AMZN. The price is between two important key points, above the 21 ema, and under the resistance at the previous top level, at $ 3,526. This is what we call a “Trap Zone”.
The 21 ema is squeezing the price against the resistance, and at some point it’ll explode, we just don’t know if it’ll do an upwards breakout, or a downwards breakout. However, we work with some scenarios.
If AMZN loses the 21 ema in the 1h chart, probably it’ll seek the 21 ema in the daily chart. The bias would still be bullish, as we lack bearish structures in the daily chart and it might be an opportunity to buy.
If we defeat the resistance at $ 3,526 then the odds are the AMZN will fill the gap at 3,580 without a pullback, and it won’t give any buy opportunity for whoever's out of it.
Either way, I see AMZN filling the gap, we just don’t know how it’ll fill it. If this analysis helped you, remember to follow me to keep in touch with my daily studies. And support this idea if you liked it!
Hi Nathan, Thanks for the analysis. I have a question: Why do you look at 21 EMA and not any other moving averages? Is there something special about 21 ema?
Thanks, Paresh
Nathan_Black
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@Paresh_Sagar, Yes, there is a reason. I suggest you to watch my Youtube video "THE BEST MOVING AVERAGE TO TRADE STOCKS". I think you'll like it. The ema is just a monthly average, and given the time frame I work, it just suits me.
Have a good day, my friend!
Paresh_Sagar
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@Nathan_Black, Thanks, I had watched it before but missed the importance of 21 ema. One request, if you could look at TBLT, DE and DVAX in your Friday video.
Thanks, Paresh
Paresh_Sagar
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@Nathan_Black, Hey Nathan, haven't heard from you for 3 days... Hope all is well with you my friend.
Br, Paresh
Nathan_Black
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@Paresh_Sagar, I'm! I was just busy. Soon I'll do more analysis, and I'll upload another vidoe on our YT channel!
Thanks, Paresh