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Fan Yang

Amazon (AMZN) Breaks Key Support Factors, But is Still Bullish

Amazon $AMZN has been consolidating and recently turned sideways action into sharper bearish action. I have been bullish on AMZN and anticipated the market buying from some support levels. However, it is clearly in a bearish correction and the share price has broken below these support levels (see chart below). 

AMZN Daily Chart

(click to enlarge)

Broken Support, Bearish Momentum:
- The title says AMZN is still bullish. I want to be clear that I am talking about the medium to long-term.
- In the short-term, we are looking at a bearish market. When price broke $1800, it also broke below a rising trendline. It continued lower during the 10/11 session, and broke a key support/resistance pivot around $1756. 
- The RSI has fallen below 30, which is a sign of bearish momentum at least in the short to medium-term.
Next Support:
- For the medium to long-term, as long as price is holding above $1640, I think the market still sees bullish outlook for AMZN.
- The 200-day simple moving average is around $1640, which is also a support/resistance pivot .
- I would anticipate support starting around $1660. 
- It is finding some support now around $1700.-