AMZN bounced the 100 week MA. Strong overhead resistance still.

AMZN bounced the 100 weekly moving average and bounced off of a prior support zone we saw it hold back in February and April of 2018. As I highlighted in my previous AMZN post (linked below,) I expected it to come down to the 100 weekly moving average, and that is exactly what it did. However, much like with other stocks, this to me looks like nothing more then a dead-cat bounce. We have strong over-head resistance from previous support zones which should in turn act as new resistance, and we are seeing evidence of that on the Daily chart as the price has failed to climb back above the 1480-1500 level that acted as support for the last 3 months before being broken. We have overhead moving averages on the Daily and on the Weekly chart which will also act as downward pressure. On the RSI, we can see it double-topped back in August, but the price action continued rising indicating a bearish divergence (as shown by the light-blue lines) and we saw the price action start to drop after this occurred. I am watching the 200 weekly moving average as the next area of interest if the price continues down. I will change my bearish stance if the price can get back above (and hold as support) several key moving averages. For now, I remain bearish.

Moving average guide:
10 MA in Orange
20 MA in Pink
50 MA in Green
100 MA in Yellow
200 MA in Red

Previous AMZN analysis:

-This is not financial advice. Always do your own research and own due-diligence before investing and trading, as for investing and trading comes with high amounts of risk.

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