Stock of the day: Amazon
24 July 2024
In today's analysis, let’s delve into Amazon's current market position. Yesterday's session was positive for Amazon, but the broader sentiment remains mixed. The price is currently below a critical resistance level of $190, marked in yellow. At the end of June, Amazon broke above this resistance, but the price quickly fell back below it, indicating a false breakout (highlighted by the orange rectangle).
This false breakout has transformed the $190 level from support to resistance. As long as Amazon remains under this yellow resistance, the sentiment is bearish, presenting a potential shorting opportunity. Traders should consider placing a stop-loss above this resistance to manage risk effectively.
Should Amazon's price manage to climb back above the $190 mark, it would negate the bearish signal and suggest a potential buying opportunity. For now, the bearish scenario appears more likely, but market dynamics can always shift, making it crucial to stay alert to any price movements around this key level.