Amazon Close to Resistance

Published on Wednesday, 08 September 2010 04:28 Written by Danny Miller

New York, September 8th (TradersHuddle.com) - Shares of Amazon.com, Inc. (NASDAQ:AMZN) are trading very close to calculated resistance at $139.50 with the current price action closing at just $137.22 placing the stock near levels that make it difficult to buy.

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 $122.25 and by the resistance level at $139.50, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Amazon, as the stock is well above support, however, as the stock pulls back towards $122.25 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $139.50 then traders will get an opportunity to enter Amazon stock by establishing a position as the stock moves to a higher range.