Is Amazon stock trapping retail traders? Is it too late?

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Historically, Amazon tends to experience a run-up leading into Prime Day, which could add positive momentum to the stock. There are some indications that history might, in fact, repeat itself.

The yellow line represents the 6-month anchored VWAP, while the white line shows the July highs anchored VWAP. These VWAPs are crucial as they provide a strong indication of where average buying and selling have occurred over significant time frames, acting as dynamic support or resistance levels.

I anticipate strong resistance near the August highs, as this is a level where increased supply could enter the market. To counter this, I am hoping for a tight consolidation or base formation in the $183.22 - $187.50 range, setting up for a powerful upside move.

If the price can hold within this range, it could pave the way for a retest of the August high and potentially push further up towards $200 by the end of the year.

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Not

AMZN closed near the Anchored VWAP (AVWAP) from the July highs. With a recent analyst downgrade and a shift in overall market sentiment, the price structure appears to have changed. If the July AVWAP fails to hold, $176 is the bulls' last line of defense to keep the trade viable. If it falls below that, the trade setup would be invalid.

As mentioned before, we should only consider entering a long position if the price shows stability within the $183-$187 range.

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İşlem kapandı: hedefe ulaştı

First target reached.