AMZN
is in a long term downtrend and is likely to continue downtrend unless market shows signs of recovery. However, It has approached a demand zone after 4 days of selling streak. I have highlighted demand zone on the chart. I have used anchored VWAP(if you don't know how to use anchored VWAP then check it out here - https://www.tradingview.com/blog/en/anchored-vwap-is-on-tradingview-18573/). I have anchored it on a recent swing high which seems to be acting as a dynamic resistance.
Todays candle filled the previous gap and entered in the demand zone. It found sufficient demand (buyers) to absorb the supply which caused the price to rebound with a good volume. This could be a start of a pullback in a overall downtrend. Now considering the VWAP as a dynamic resistance and a visible last support level at 133 (which could act as a resistance now), a conservative long target would be at 133 as shown in the chart.
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Trade closed: target reached:
As expected, price bounced from a demand zone and got reversed again from a supply zone. It was a good bounce to play.
