Amazon near Key Support Area
Published on Tuesday, 14 February 2012 08:48 Written by TradersHuddle Wire
New York, February 14th (TradersHuddle.com) - Shares of Amazon.com, Inc. (NASDAQ:AMZN) finished near calculated support at $181.76.
Current price action with, the largest online retailer closed at $185.54 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.
Amazon's current stock range is defined by current calculated support defined at $181.76 and by the resistance level at $196.50.
The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.Traders wanting to establish a position should pay close attention to Amazon's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $196.50 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.