Peter Smith
⬤ Amazon shares are catching technical momentum after a bullish MACD crossover appeared on the daily chart. The stock's hovering around $228 following a steady pullback that carved out a downward channel. Price is now squeezing up against descending resistance while momentum indicators start turning positive. According to @LuxAlgo, this crossover pattern often signals potential momentum shifts worth watching.
⬤ Despite this positive development, AMZN remains stuck below a well-defined downtrend line, meaning the bigger picture hasn't flipped yet. Recent price action shows the selling pressure's easing though – the stock's stabilizing rather than dropping harder. The MACD lines crossing upward and the histogram moving toward neutral territory reflect this improving short-term momentum, even without a confirmed breakout.
⬤ There's another layer to this setup: a volatility squeeze indicator on the chart shows compressed volatility after the previous decline. This tight range usually comes before price makes a bigger move in either direction. While the squeeze itself doesn't predict which way it'll go, its timing alongside the bullish MACD cross puts Amazon at a technically sensitive spot where momentum and price structure are lining up.
⬤ The real question now is whether this setup stays contained within the current range or breaks out into something bigger. Amazon's role in tech market sentiment means these momentum shifts during consolidation can ripple across the sector even before price clears major resistance levels. Traders are watching to see if this technical improvement at trend resistance develops into a directional move in the coming sessions.
Peter Smith
