AMZN Reversal Setup: Trading Plans for Upcoming Momentum Nov 20
AMZN is showing signs of recovery after a sharp sell-off, reclaiming key levels with momentum building on the hourly timeframe. With potential for both scalping and swing trades, this setup focuses on exploiting AMZN’s trend reversal opportunities. Here’s a detailed trading plan based on price action, liquidity zones, and technical insights.
Market Structure Overview
* Descending Trendline Breakout: AMZN has successfully broken out of a steep descending trendline, indicating a reversal attempt.
* Consolidation Phase: The stock is consolidating between $200.00 and $205.00, gearing up for a directional move.
* Volume Insights: Rising volume near support levels suggests accumulation and potential upside momentum.
Liquidity Zones
* Demand Zone (Support): $198.50 - $200.00. Strong buying activity has been observed here, making it a crucial level for bulls to defend.
* Supply Zone (Resistance): $205.00 - $208.00. Sellers may emerge in this range, as it aligns with previous rejection zones.
Order Blocks
* Bullish Order Block: $198.50 - $200.00. This zone could serve as a launching pad for further upside moves.
* Bearish Order Block: $205.50 - $207.00. Watch for potential rejections or profit-taking here.
Key Levels
* Support Levels: $198.50, $200.00.
* Resistance Levels: $205.00, $208.00, $215.99.
Technical Indicators
* 9 EMA & 21 EMA (Hourly): AMZN has crossed above these levels, signaling short-term bullish momentum.
* MACD (Hourly): Bullish crossover with increasing histogram bars, confirming upward momentum.
* RSI (Hourly): Neutral at mid-50s, offering room for further upside before overbought conditions.
Scalping Plan
* Entry: Enter long on pullbacks to $203.50 - $204.00 with confirmation from bullish candles.
* Exit: Target $205.50 for partial profits, extending to $207.00 if momentum sustains.
* Stop-Loss: Place a tight stop at $202.50 to manage risk.
* Game Plan: Use quick momentum-based entries during volume spikes, particularly near breakout levels.
Swing Trading Plan
* Entry: Accumulate positions near $200.00 - $201.00 for a potential upside move.
* Exit: First target at $208.00, with extended targets at $215.99 for a larger move.
* Stop-Loss: Place a stop-loss below $198.50 to protect against further downside.
* Game Plan: Wait for confirmation of a higher low on the hourly timeframe to add confidence to the swing setup.
Projection
AMZN’s breakout and consolidation above $200.00 indicate potential for a move toward $208.00 and $215.99 in the coming sessions. However, failure to hold $200.00 could see a retest of $198.50, offering another entry point for longs.
My Thoughts
AMZN is well-positioned for a continuation of its recovery trend. Scalpers can focus on quick trades between $203.50 and $205.50, while swing traders may find attractive opportunities near $200.00 with targets at $208.00 and beyond. Maintain discipline with stops and let the chart guide your trades.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research and consult a financial professional before making trading decisions.
Market Structure Overview
* Descending Trendline Breakout: AMZN has successfully broken out of a steep descending trendline, indicating a reversal attempt.
* Consolidation Phase: The stock is consolidating between $200.00 and $205.00, gearing up for a directional move.
* Volume Insights: Rising volume near support levels suggests accumulation and potential upside momentum.
Liquidity Zones
* Demand Zone (Support): $198.50 - $200.00. Strong buying activity has been observed here, making it a crucial level for bulls to defend.
* Supply Zone (Resistance): $205.00 - $208.00. Sellers may emerge in this range, as it aligns with previous rejection zones.
Order Blocks
* Bullish Order Block: $198.50 - $200.00. This zone could serve as a launching pad for further upside moves.
* Bearish Order Block: $205.50 - $207.00. Watch for potential rejections or profit-taking here.
Key Levels
* Support Levels: $198.50, $200.00.
* Resistance Levels: $205.00, $208.00, $215.99.
Technical Indicators
* 9 EMA & 21 EMA (Hourly): AMZN has crossed above these levels, signaling short-term bullish momentum.
* MACD (Hourly): Bullish crossover with increasing histogram bars, confirming upward momentum.
* RSI (Hourly): Neutral at mid-50s, offering room for further upside before overbought conditions.
Scalping Plan
* Entry: Enter long on pullbacks to $203.50 - $204.00 with confirmation from bullish candles.
* Exit: Target $205.50 for partial profits, extending to $207.00 if momentum sustains.
* Stop-Loss: Place a tight stop at $202.50 to manage risk.
* Game Plan: Use quick momentum-based entries during volume spikes, particularly near breakout levels.
Swing Trading Plan
* Entry: Accumulate positions near $200.00 - $201.00 for a potential upside move.
* Exit: First target at $208.00, with extended targets at $215.99 for a larger move.
* Stop-Loss: Place a stop-loss below $198.50 to protect against further downside.
* Game Plan: Wait for confirmation of a higher low on the hourly timeframe to add confidence to the swing setup.
Projection
AMZN’s breakout and consolidation above $200.00 indicate potential for a move toward $208.00 and $215.99 in the coming sessions. However, failure to hold $200.00 could see a retest of $198.50, offering another entry point for longs.
My Thoughts
AMZN is well-positioned for a continuation of its recovery trend. Scalpers can focus on quick trades between $203.50 and $205.50, while swing traders may find attractive opportunities near $200.00 with targets at $208.00 and beyond. Maintain discipline with stops and let the chart guide your trades.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research and consult a financial professional before making trading decisions.
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