Hello friends, welcome to our new post. Today wuth the help of technical analysis and support and resistance we will try to finf out right time to buy amazon stock where chances of lossing is very less and chances of gaining will be high.
Amazon Monthly Chart-
Below is the Technical chart of Amazon, but here notice one thing here we drawn the monthly chart of the stock so we can find the longterm support of it. In longterm support chances of share to fall below this level is getting less and from here we can expect a bounce.
Here we can see that stock is continuously falling from it's all time high level of nearly 188 and now stock is trading at 113.55 level that mean stock is already corrected ~40% from it's peak level.
Here notice one thing to that stock already started to bounce from 102.5 (Longterm Support) level that mean hihger the chances it would not break this level as of now. From the last two months Amazon tested the low of 102 and now on the third month stock has shown rejection or bounce from this level.
Amazon Daily Chart-
Here is the Amazon's Daily technical chart, here you can see the stock is about to make a Symmetrical triangle pattern after the pattern breaks then we can consider to take entry here with a proper Stoploss and risk management.
On the above chart not just one there is two breakout pattern is visible one is Symmetrical triangle pattern and another one is Range Pattern. above we discussed about symmetrical triangle pattern now we will discuss about what levels we can expect after Range Breakout.
As you can see here amazon is making ~23.50 points of range here is upper range is of 126 and lower range is of 102.5 difference between them is of 23.50. So we can assume that after breaking this Range Amazon can show a possible move of nearly of 23.50 points. As per this target of Amazon stock will be 135 and 150.
