Is Amazon Closing in to Support?

Published on Friday, 13 July 2012 08:04 Written by TradersHuddle Wire

New York, July 13th (TradersHuddle.com) - Shares of Amazon.com, Inc. (NASDAQ:AMZN) are trading very close to calculated support at $206.37 with price action closing at just $215.36 and placing the stock near levels where traders will start paying attention.

Amazon's stock range is defined by its calculated support defined at $206.37 and by the resistance level at $230.50, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Amazon's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $230.50 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Amazon.com, Inc. (NASDAQ:AMZN) operates as an online retailer worldwide. The company serves its consumer customers through its retail Websites and focuses on selection, price, and convenience. It also offers programs that enable seller customers to sell their products on its Websites and their own branded Websites. One of the biggest seller items for Amazon is books and e-books, which can be read with Amazon's Kindle e-reader.