Earlier in February, we took note of Amazon’s stock (AMZN) being on a downtrend below its best respected moving average resistance lines.
In the two months that passed since, AMZN has been still respecting those resistance lines and could not break above them, both on the weekly and on the daily time frames.
The weekly chart below shows how Amazon’s stock is still below the 40-week SMA (body) and the 47-week SMA (wick) resistance lines:
In the last couple of months, AMZN made a higher low before turning back up and getting close to the resistance lines. From this point, market participants may move the price up and help it break resistance. Alternatively, they may step away from purchasing the stock at this level, which is close to the resistance line. Not putting the funds in could result in a price drop.
The same story plot develops on the daily time frame. Here, AMZN is looking to break through or surrender to the 204-day SMA (body) and the 216-day SMA (wick) resistance lines:
The resistance lines on both time frames flatten their slope angle towards the horizon. It will be interesting to see where the price action will take the stock from this point.