Amazon, one of the trillion-dollar companies, has been on a bull run since past few months. Now, we anticipate a correction since Jeff Bezos stepped down and the new CEO took over.

Technically, DAILY time frame will be analyzed for going long. We won’t be looking for shorts on Amazon given the long-term outlook on the fundamental company aspect.

- Market structure: Amazon has had a strong bull run with creating new higher highs and higher lows. It broke the $3500 resistance level with force and is expected to test the $3400 support to make a new high. This support is the region we anticipate to go long at.

- Trendline: An ascending trendline is in formation $50 below. Even if this trendline is compromised/broken, the structure will still remain bullish until we have broken the $3400 support. Also, the resistance trendline/ascending trendline was pierced earlier. The validation was confirmed as the candles opened and closed above.

- Retracement: The retracement level should confluence with the support level for us to plan a trade. In this case of Amazon, we see support and retracement overlap at the 50-61.8% region.

- EMA's: Both EMA’s are bullish. After the breakout of EMA 50, Amazon still hasn’t retested it. Right now, the EMA 50 lies perfectly with the support. This gives us an added confirmation of support and retracement confluence along with the EMA 50 retest.

- RSI/CCI: Both RSI and CCI are bullish, hovering the in the 55 and 88 region respectively. An ascending trendline is also drawn to detect a pivot point where market could reach before turning back up to the over-bought area. Both oscillators have been reclining from the over-bought area and may test the same region again.

Amazon stock is one of the favorite stocks traded on Wall Street. This gives it high volume for retailers to trade as well. Amazon is fundamentally very strong right now and based on our trading plan, if this support of $3400 is breached, we will look for the second support to buy from. Shorting is not an option currently.

Amazon potential longs from $3400

Jul 17 2021