AMZN reclaimed the daily 50 SMA last week and is trading into the August high supply. If it gets rejected in this area, a retest of the lower trendline would correspond to the daily 50 SMA, and other converging demand zones including the .618 retracement level from the all-time high to the August low. If demand is held in this area, it may be a good long entry point ahead of the wedge breakout. Alternatively, if price builds above the August high, it is likely to retest the all-time high. Trade closed: target reached
AMZN has been a great long swing for the past two months, and reclaimed the August high supply before continuing on to break out of the wedge on the daily chart. The all-time high supply will be the next key area for AMZN to reclaim in order to continue higher. This correlates with the area that Jeff Bezos sold shares earlier this year. As always, I scale out of my positions when supply is rejected in order to reload the long on dips when demand is held.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.