Good morning traders, Today I am analyzing Amazon with the upcoming June stock split in mind...We've seen a break of May 2020 support at 2255ish area as well as a Feb 2020 resistance point at 2187ish dropping to a 2018/2019 resistance area at 2039ish area...Today we have seen the stock bounce off of that resistance turned POSSIBLE support with the stock being up 5%ish...We have a GAP fill to the topside up to 2332ish area which also aligns with the .382 FIB...Where do I see this stock going you ask????
IMO it is hard to be bullish on any stock right now even with a stock split on the books...I do believe we see a relief rally to at least fill the GAP to $2332 or the .382 FIB w/ a possibility to move up to the .618(the most important FIB #) at the 2508ish area...From one of these 2 points I believe the stock comes back down to retest that possible support at the 2039ish area.
IF support is broken at the 2039ish area I fully believe the stock falls to fill the lower GAP down to the 1690ish area testing areas from March 2020 as support levels.
All in all there is a possibility to be bullish for the short term but be very careful...I will be looking for a short position at one of the retest points stated above for a move down to retest possible support at 2039ish area and then will wait to see where it goes from there.