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“Correction Continues – Is the Bottom In or More Pain Ahead?”

Hello and welcome back, everyone!

Today, we’re diving into a detailed analysis of Amazon (AMZN)—reviewing both the daily and weekly chart setups, identifying key support/resistance zones, and discussing what to watch in the coming days and weeks. If you’re actively trading or investing in Amazon, this post is for you.

Let’s get started.

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🔍 The Daily Chart – A Downtrend That’s Hard to Ignore

If you’ve been following Amazon lately, you already know: the stock hasn’t looked strong for a while. The downtrend has lasted more than two months, with AMZN sliding from its recent high near $243 all the way down to $161–162, marking a 33%–34% correction. That’s a significant move for a tech giant of this size.

Last week’s price action didn’t inspire much confidence either. We saw a break below an important trendline, and the stock failed to recover into the weekend. As things stand, there’s no clear bullish momentum, and unless Amazon reclaims the $191–192 resistance zone, we could see further weakness or consolidation in the near term.

This is a textbook “lower highs, lower lows” setup—a common signal that sellers remain in control. Short-term traders should be cautious here: any bounce might be short-lived unless supported by strong volume and market-wide catalysts.

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🚨 Short-Term Support & Resistance Levels

Here are the major levels to keep an eye on:

• Support: $161–$162
• Resistance: $191–$192 (key trendline resistance)
• Breakout Level: A confirmed close above $192 could shift the short-term bias to bullish.

Until that happens, the market is likely to remain in a sideways-to-bearish zone, possibly even dipping lower if broader tech sentiment weakens further.

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🧭 Weekly Chart – Are We Near a Turning Point?

Now, zooming out to the weekly timeframe gives us a slightly more hopeful perspective. Amazon is currently testing a key support area that dates back to July 2024. Historically, this zone has acted as a strong buying point, especially after steep corrections.

That said, weekly structure still leans bearish. For long-term investors, this could be an opportunity to start building a position slowly, especially if the market begins forming higher lows or consolidates in this range with declining volatility.

The catalyst to watch? Likely news related to tariffs, trade policy, or macroeconomic indicators. Any shift in sentiment could spark a strong move either way. Until then, patience is key.

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📝 What This Means for Traders & Investors

🎯 For Traders:

• Short opportunities are available but should be approached with tight risk control.
• Breakout traders should wait for $192+ confirmation before committing to the long side.
• Market is very headline-sensitive, so news can quickly flip sentiment.

📈 For Long-Term Investors:

• This zone could offer a good “buy the dip” opportunity, but it’s safer to wait for signs of trend reversal—like a higher low or reclaiming the 50-day moving average on the daily chart.
• Look for volume spikes near support zones, as that often signals institutional accumulation.

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💡 Final Thoughts: “Wait, Watch, and React”

Amazon’s correction has brought the stock to a crucial juncture. We’re sitting at support, but the lack of strong bullish signals means this isn’t the time to dive in blindly. Next week will be key—both from a price action standpoint and from a macro news perspective.

If you’re a trader, be nimble. If you’re an investor, stay patient and look for confirmation.

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Let’s stay sharp out there. Happy trading! 👋

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