The Setup (Bias): I am taking a LONG bias on Amazon.com, Inc. (AMZN) on the weekly timeframe.
The "Why" (Technical Reasons): 1. Major Resistance Breakout: The price has powerfully broken above the recent structural swing high at $256.44.
2. Aggressive Bullish Momentum: After a sharp pullback, buyers stepped in with immense force. We are now seeing consecutive, massive green weekly candles that have completely erased the previous sell-off. This V-shaped recovery and subsequent breakout show that bulls are in complete control of the macro trend.
Trade Plan (Entry & Exits): * Entry: Momentum traders can look for entries near the current market price of $263.99 to capture the immediate surge. A more conservative, lower-risk approach would be waiting to catch a potential pullback or retest of the $256.44 zone, letting old resistance become new support.
Take Profit (Target): With the stock breaking into fresh territory with immense relative strength, the next major psychological targets are $280.00, followed by the $300.00 milestone.
Stop Loss: Placed safely below the most recent minor structural support on the way up, around $235.00. A weekly close below this level would indicate a failure of the breakout momentum.
Duration: Because this analysis is built on a 1-Week chart, this is a medium-to-longer-term swing trade designed to play out over the coming weeks to months.
The "Why" (Technical Reasons): 1. Major Resistance Breakout: The price has powerfully broken above the recent structural swing high at $256.44.
2. Aggressive Bullish Momentum: After a sharp pullback, buyers stepped in with immense force. We are now seeing consecutive, massive green weekly candles that have completely erased the previous sell-off. This V-shaped recovery and subsequent breakout show that bulls are in complete control of the macro trend.
Trade Plan (Entry & Exits): * Entry: Momentum traders can look for entries near the current market price of $263.99 to capture the immediate surge. A more conservative, lower-risk approach would be waiting to catch a potential pullback or retest of the $256.44 zone, letting old resistance become new support.
Take Profit (Target): With the stock breaking into fresh territory with immense relative strength, the next major psychological targets are $280.00, followed by the $300.00 milestone.
Stop Loss: Placed safely below the most recent minor structural support on the way up, around $235.00. A weekly close below this level would indicate a failure of the breakout momentum.
Duration: Because this analysis is built on a 1-Week chart, this is a medium-to-longer-term swing trade designed to play out over the coming weeks to months.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.