In today’s analysis we have a real big fish: Amazon. The reason behind this analysis lays in yesterday’s session when the price action gave us an amazing buy signal.
You may ask: well, Amazon is on all-time highs and you’re still talking about the buy signal? Well yes, Amazon may be high but it does not mean that the upswing will not be continued. Let me explain.
For the past year, since July 2020, Amazon has been inside a long-term sideways movement. The price was locked between the support level of 2900 USD and the resistance of 3530 USD. For a whole year, the price was moving back and forth, testing support and resistance from the inside. This ended yesterday. The resistance was broken and the price went higher, establishing new all-time highs. The rise was huge as the signal from that breakout was pretty clear to everybody.
A potential target for the current rise is above 4000 USD, so we still have a lot of room to get there. That is why, this buy signal is still valid and still looks good from a risk to reward point of view. The positive sentiment is on, as long as the price stays above the upper blue line. The price falling back below is always possible but currently, not very probable.