Hello traders and investors! Yes, AMZN did exactly what we expected, after it confirmed a top in my last analysis. Now, what to expect here?
First, despite the drop, keep in mind that we just hit a Dual-Support level in the daily chart. The first one is the 38.2% Fibonacci’s Retracement, and the second one is the 21 ema. In our last analysis, we set a target at the 21 ema, if it loses the “Trap Zone” we were looking at by the time it was above the $ 3,500. Link to my previous analysis is below this post, as usual.
Now, let’s see the 1h chart:
In the 1h chart, it seems we have an Exhaustion Bar: A large bar, with high volume, near the previous support that appears after a restless bearish movement.
This pattern wasn’t confirmed yet, but it makes perfect sense, given the D and 1h chart support levels. So far, we have a Harami candlestick, which might work as a reversal.
If we see any bullish confirmation tomorrow, I’ll consider AMZN as a buy. If you liked this analysis, remember to follow me to keep in touch with my daily updates, and support this idea if you liked it!