Trading Amazon.com before earnings. Why this level is so critical.

I've been watching Amazon.com recently as prices have been hovering near the $190 level.

First, let's discuss why $190 is such an important level.

Weekly chart

From 2021 to 2024, $190 has acted as a key resistance level. Between late 2021 and 2022, the price fell nearly 55% from this high.

$190 is a key resistance level

Daily Chart

$Amazon.com(AMZN)$ previous earnings on Aug 2024 saw price gapped down but soon recovered to test the $190 level again!

With the upcoming earnings, the price has once again challenged the $190 level, highlighting its significance to the stock.

As you know, predicting price movements during earnings is difficult.

Based on the current chart pattern—a cup and handle, which is a bullish continuation pattern—I believe the price is likely to rise.

But what if it doesn’t?

This is when investors need to protect themselves with a hedge.

DLCs offer built-in loss protection—the maximum loss is limited to the price paid for the DLCs. While this doesn’t mean you will lose everything, it does provide a clever form of protection.

$Amazon.com(AMZN)$ DLCs

$AMZN 3xLongSG261006(USAW.SI)$ Long DLC

$AMZN 3xShortSG261006(USBW.SI)$ Short DLC

Follow me for fresh ideas. :)

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