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When Amazon’s Resistance Became Support

AMZN doubled after it broke above its ex-resistance-now-support band. Will earnings trigger a reverse break?

It was May of 2023 when we wrote about how Amazon’s stock, AMZN, was struggling with breaking its daily and weekly resistance bands.

On the weekly time frame, AMZN attempted to break above its 40-week SMA and 47-week SMA resistance lines:

AMZN, overlaid with its 40-week SMA and 47-week SMA lines as of Sunday, 7 May 2023, weekly chart

On the lower time frame, it was the stock’s 204-day SMA line that formed the daily resistance band together with the 216-day SMA line:

AMZN, overlaid with its 204-day SMA and 216-day SMA lines as of Sunday, 7 May 2023, daily chart

In nearly a year and a half since our last post, Amazon’s stock broke above these resistance bands and hasn’t looked back.

On a weekly chart, AMZN treated its ex-resistance band as support. It still respects this support band to this day:

AMZN, overlaid with its 40-week SMA and 47-week SMA lines, weekly chart

AMZN’s daily chart does not look different:

AMZN, overlaid with its 204-day SMA and 216-day SMA lines, daily chart

Amazon is scheduled to release its Q3 2024 earnings on Thursday this week, AMC.

AMZN’s price is relatively close to the support bands. The 3rd quarter earnings might trigger a price movement away from the SMA bands.

The question is – to which direction?

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