AMZN
is in a long term downtrend and is likely to continue downtrend unless market shows signs of recovery. However, It has approached a demand zone after 4 days of selling streak. I have highlighted demand zone on the chart. I have used anchored VWAP(if you don't know how to use anchored VWAP then check it out here - https://www.tradingview.com/blog/en/anchored-vwap-is-on-tradingview-18573/). I have anchored it on a recent swing high which seems to be acting as a dynamic resistance.
Todays candle filled the previous gap and entered in the demand zone. It found sufficient demand (buyers) to absorb the supply which caused the price to rebound with a good volume. This could be a start of a pullback in a overall downtrend. Now considering the VWAP as a dynamic resistance and a visible last support level at 133 (which could act as a resistance now), a conservative long target would be at 133 as shown in the chart.
If you have different opinion, please share your thoughts in the comment. If you like my ideas, then please show some appreciation with a like and follow. Happy and safe trading! :)
עסקה סגורה: היעד הושג:
As expected, price bounced from a demand zone and got reversed again from a supply zone. It was a good bounce to play.
