Amazon Forecast And Technical Analysis

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Amazon Forecast And Technical Analysis

Hi Traders! Amazon forecast and technical analysis post is here. In this, multi-time frame technical analysis method will be applied in order to look for all the possible evidences that support my view on the current trading timeframe and the higher timeframe. The platform in which we perform this multi-timeframe analysis is on the MetaTrader4(MT4). You can find some useful tips and hacks about the MT4 platform here. We will start our analysis from the highest timeframe now which will be the daily chart here.

Amazon D1(Daily) Chart Analysis – Bullish Trend Pattern, Bearish Divergence, Strong Support Zone

On the daily chart the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, it looks like this bullish trend pattern has completed itself now. Generally, after a bullish trend pattern we may expect a correction to happen and then further continuation higher. We also had a bearish divergence between the first high that has formed on 13th July 2020 and the second high that has formed on 2nd September 2020 based on the MACD indicator which we may consider as evidence of bearish pressure. Currently, it looks like a correction is happening, we have the first leg down and the price still has room lower towards the strong support zone formed by the 38.2% – 50% fibonacci retracement zone. We may now move down to lower timeframe and look for evidences supporting this bearish view.

Amazon Forecast And Technical Analysis

 

 

Amazon H4(4 Hours) Chart Analysis – Bearish Hidden Divergence, Strong Resistance Zone

Looking at the H4 chart we could see that after the first leg to the downside currently, it looks like a correction is happening. We have a bearish hidden divergence that has formed between the first high that has formed at 3546.22, and the second high that has formed at 3211.23 based on the histogram of the MACD indicator which we may consider as evidence of bearish pressure. We also have a strong resistance zone that has formed and the price is nearing this resistance zone.  Until this strong resistance zone holds my view remains bearish here and I expect the price to continue lower further.

Amazon Forecast And Technical Analysis

 

Technical Analysis & Forecast Summary

Amazon D1(Daily) Chart Analysis 

  • Bullish Trend Pattern, Bearish Divergence, Strong Support Zone

Amazon H4(4 Hours) Chart Analysis 

  • Bearish Hidden Divergence, Strong Resistance Zone

 

Trading Tips

It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.

Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to join me in my live market analysis, on daily basis, and improve your trading with us.

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Also, you can get one of my strategies free of charge. You will find all the details here

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

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