Amazon (AMZN) Swing Trade Analysis

## Amazon (AMZN) Swing Trade Analysis
**Timeframe: 4H Chart (as per your screenshot, May 2, 2025)**

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### **Technical Overview**

#### **1. Price Structure**
- **Trend:** The chart shows a recent reversal from a downtrend, with price making higher lows and attempting to break resistance around $190–$192.
- **Support:** Strong support is visible near $178.66 and a major support at $162.49.
- **Resistance/Target:** The green zone targets the $241.53–$241.86 area, which is a previous supply/resistance zone.

#### **2. Indicators**
- **RSI (Relative Strength Index):**
- Currently around 57–58, which is neutral-bullish and not overbought.
- Indicates there’s still room for upside before becoming overbought (>70).
- **MACD:**
- Bullish crossover recently, with the MACD line above the signal line and positive histogram.
- Suggests momentum is shifting to the upside.

#### **3. Risk/Reward**
- **Entry:** Around $189.67 (current price).
- **Stop Loss:** Below $178.66 (recent swing low/support).
- **Target:** $241.53–$241.86 (previous resistance).
- **Risk/Reward Ratio:**
- Risk: ~$11 (from $189.67 to $178.66)
- Reward: ~$52 (from $189.67 to $241.53)
- **R:R ≈ 1:4.7** - Excellent for swing trading.

#### **4. Volume & Volatility**
- Amazon is highly liquid, ensuring good fills and manageable slippage.
- The volatility is suitable for swing trading, with clear price swings and defined levels.

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### **Why AMZN is Suitable for Swing Trading Now**

- **Clear Reversal Structure:** The downtrend has paused, and higher lows are forming-a classic swing setup.
- **Defined Support/Resistance:** Well-established levels allow for precise stop and target placement.
- **Strong Risk/Reward:** The setup offers a high R:R ratio, which is ideal for swing trades.
- **Momentum Confirmation:** Both RSI and MACD support a potential bullish move.
- **No Immediate Overbought Signal:** RSI is not yet overbought, so there’s room for the trade to develop.
- **Earnings Passed:** The last earnings event is behind, reducing the risk of surprise volatility.

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### **Potential Risks**

- **If price fails to break $192–$195 resistance, a pullback to support ($178.66) is possible.**
- **Broader market weakness or negative news could invalidate the setup.**
- **Always use a stop loss as planned.**

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## **Conclusion & Recommendation**

**Yes, AMZN is a strong candidate for a swing trade at this moment.**
- The technicals, risk/reward, and liquidity all align for a textbook swing setup.
- Enter above $190 with a stop below $178.66 and target $241+.
- Monitor for confirmation of breakout above $192–$195 for added conviction.

**(As always, manage your position size and risk according to your prop firm’s rules!)**

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**Would you like a similar analysis for any other stock?**

Sources
[1] image.jpg pplx-res.cloudinary.com/image/upload/v1746196364/user_uploads/QytwVOsiIHqXhQX/image.jpg