Key Support Pivot Forming in Amazon AMZN

Mar 27, 2014: 2:39 PM CST

Amazon.com (AMZN) shares hit a confluence support target today, as I highlighted originally in the post “Charting a Hidden Resistance Level in Amazon.”

Let’s update the analysis to include the newly achieved target and visualize a support bounce… or steeper retracement breakdown play.

We’ll start with the Daily Chart update:

AMZN Daily Chart confluence support uptrend inflection pivot point

As referenced in the “Hidden Resistance Area” post, Amazon shares traded down against the ‘secret’ resistance into $380 per share.  For a broader background before the upward bounce, see my update Charting the Amazon AMZN Support Bounce.

The first and most logical target was the prior swing low into the $345 per share area (achieved yesterday) and then the rising potential support of the 200 day SMA ($338.20).

At the moment, although shares traded initially through the 200 day SMA target, they’re resting right on top it it to close the session directly on the 200 day SMA pivot target.

The rising 50 week EMA forms a tight confluence with the 200 day SMA as seen in the chart below:

AMZN Amazon Weekly Chart Trend Retracement Reversal Trade

The other focal point is the rising 50 week EMA into $334.32 per share.  Focus on this level for any sort of upward bounce that may develop off this potential pivot.

Otherwise, Amazon.com (AMZN) enter ‘reversal’ territory with a break and close under confluence support levels, trendlines, and rising moving averages (on all timeframes).

For the moment, this will be the “line in the sand” for bullish or bearish strategies in Amazon.

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Corey Rosenbloom, CMT
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2 Comments

2 Responses to “Key Support Pivot Forming in Amazon AMZN”

  1. Three Aggressive Reversal Plays from Consecutive Down Days | Afraid to Trade.com Blog Says:

    […] my prior post on Amazon (AMZN) for another example of a 200 day SMA inflection […]

  2. Three Aggressive Reversal Plays from Consecutive Down Days — Trading Your Own Way Says:

    […] my prior post on Amazon (AMZN) for another example of a 200 day SMA inflection […]