To The Moon

Amazon ( $Amazon.com(AMZN)$ ) Technical Analysis

Key Observations:

1. Previous All-Time High as Support:

   The green horizontal line $187 marks a previous all-time high, which could act as a strong support during this correction. Price is currently pulling back after reaching the upper boundary of the equidistant channel.

2. Equidistant Channel Structure:

   The stock appears to be moving within an equidistant channel, respecting both the upper and lower boundaries.The recent rally touched the top of the channel, leading to a pullback. If price continues following this pattern, the bottom of the channel could act as support.

3. Estimated Support Area:

   The lower boundary of the equidistant channel currently aligns with the $170 - $180 range. This coincides with the previous all-time high at $187, reinforcing a potential support zone.

Using DLCs to Capture Opportunities:

• Bullish Opportunity: If price finds support at the lower boundary, traders could consider a long DLC (e.g $AMZN 3xLongSG261006(USAW.SI)$ to capture a potential rebound.

• Bearish Opportunity: If the current correction continues lower, a short DLC (e.g. $AMZN 3xShortSG261006(USBW.SI)$ could be used to capitalize on the downward movement.

• Risk Management: Traders should watch for price action confirmation near support and resistance before entering a position with DLCs.

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