AMZN Testing Breakout Zone – Will Bulls Hold the Momentum?

Technical Analysis & Options Outlook

📌 Current Price: $196.05

📌 Trend: Bullish Momentum with Key Resistance Ahead

📌 Timeframe: 1-Hour

Price Action & Market Structure
1. Bullish Reversal Confirmed – AMZN rebounded from the $190 PUT Wall, forming a higher low.

2. Breakout Attempt in Progress – Price is testing the trendline resistance, a key breakout zone.

3. Retest Possible – If rejected at $198–$200, AMZN may pull back to $195–$192 before continuing higher.

4. MACD & Stoch RSI – Both indicate strong bullish momentum, but Stoch RSI is nearing overbought territory, signaling possible short-term consolidation.

Key Levels to Watch

📍 Immediate Resistance:

🔹 $198 – Trendline Breakout Level

🔹 $200 – Major CALL Resistance (70.86%)

🔹 $202.50 – Strong CALL Wall & Potential Profit-Taking Zone

📍 Immediate Support:

🔻 $195 – Breakout Retest Zone

🔻 $190 – Highest Negative NETGEX / PUT Support

🔻 $185 – Deeper Liquidity Zone for Buyers

Options Flow & GEX Sentiment

* IVR: 40.7 (Moderate Volatility)
* IVx: 36.1 (-2.26%) (Declining Volatility)
* GEX (Gamma Exposure): Bullish Sentiment Improving
* CALL Walls: $200 & $202.50 (Upside targets)
* PUT Walls: $190 & $185 (Major support zones)

📌 Options Insight:
* Above $198, expect a gamma-driven move toward $200–$202.50 if momentum sustains.
* Below $195, risk increases for a test of $190, which has been a strong demand zone.

My Thoughts & Trade Recommendation
🚀 Bullish Case: If AMZN holds above $195, expect continuation to $200–$202.50.

⚠️ Bearish Case: If AMZN fails at $198, expect a retest of $190–$185 before another move higher.

Trade Idea (For Educational Purposes)

📌 Bullish Play:

🔹 Entry: Break and hold above $198

🔹 Target: $200–$202.50

🔹 Stop Loss: Below $195

📌 Bearish Play (Hedge Idea):

🔻 Entry: Rejection at $198

🔻 Target: $190 PUT Wall

🔻 Stop Loss: Above $200

Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research and manage risk accordingly.

Final Thoughts
AMZN is in a critical breakout zone at $198. A strong move above this level could trigger a rally toward $200–$202.50, while failure to break could lead to a pullback toward $190 before attempting another move up. Watch price action carefully and wait for confirmation before entering a trade.