Price closing below $1572.30 presents trouble for Amazon.
Analysis for the e-commerce giant, Amazon is presented on the 4 hour timeframe using a logarithmic scale. Over 13 months of price action is covered including the bullish trendline in Amazon since October 24, 2017.
Amazon has traded lower ever since it reached a price high of $2050.27 achieved on September 04, 2018, including price breaking below the bullish trendline on October 03, 2018. Both scenarios above do suggest a plausible trend change in Amazon from bullish to sideways at best.
Current and immediate resistance or overhead supply as drawn on the chart lies between $1848.60 and $1774.17. The trading zone is bordered on the bottom by support which is between $1350.77 and $1265.88.
Lack of price closing above the top of resistance and/or consolidating in this region does argue for a bearish bias. In this case, a conservative point of entry into a short (sell) position is on a break below the price low on February 08, 2019 = $1572.30.
The minimum target for the bear swing is the upper region of support = $1350.77
Analysis for the e-commerce giant, Amazon is presented on the 4 hour timeframe using a logarithmic scale. Over 13 months of price action is covered including the bullish trendline in Amazon since October 24, 2017.
Amazon has traded lower ever since it reached a price high of $2050.27 achieved on September 04, 2018, including price breaking below the bullish trendline on October 03, 2018. Both scenarios above do suggest a plausible trend change in Amazon from bullish to sideways at best.
Current and immediate resistance or overhead supply as drawn on the chart lies between $1848.60 and $1774.17. The trading zone is bordered on the bottom by support which is between $1350.77 and $1265.88.
Lack of price closing above the top of resistance and/or consolidating in this region does argue for a bearish bias. In this case, a conservative point of entry into a short (sell) position is on a break below the price low on February 08, 2019 = $1572.30.
The minimum target for the bear swing is the upper region of support = $1350.77
