Approaching Support- Amazon

Published on Tuesday, 24 August 2010 19:12 Written by Christopher Lynn

New York, August 24th (TradersHuddle.com) - Shares of Amazon.com, Inc. (NASDAQ:AMZN) are trading very close to calculated support at $123.04 with current price action closing at just $124.53 places the stock price near levels where traders will start paying attention.

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.

Amazon's current stock range is defined by current calculated support defined at $123.04 and by the resistance level at $130.81, which should be used by traders planning their trades.

Traders wanting to establish a position should place 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 $130.81 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.