Amazon (AMZN) Technical Analysis – Fibonacci Levels in Focus

 

Amazon (AMZN) is currently trading around $206, following a sharp pullback from its recent high near $258. The chart shows a clear corrective structure with Fibonacci retracement levels acting as key reaction zones. Let’s break down the technical picture.

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1. Recent Price Structure

• Recent High: ~$258

• Current Price: ~$206

• Key Fibonacci Range: ~$248 (0%) to ~$204 (100%)

Price initially rejected near the upper channel and the 0% Fibonacci level (~$248). From there, selling pressure accelerated, pushing the stock down toward the 78.6% retracement zone (~$214) and eventually testing near the 100% level (~$204).

This suggests a full retracement of the prior upward move.

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2. Key Fibonacci Levels to Watch

• 23.6% – $237.97 → First resistance

• 38.2% – $231.61 → Short-term recovery barrier

• 50% – $226.47 → Mid-range resistance

• 61.8% – $221.34 → Major retracement level

• 78.6% – $214.02 → Breakdown confirmation zone

• 100% – $204.71 → Critical support

Currently, price is hovering near the 100% retracement area, which is technically significant. Holding above $204–$206 may allow for a technical bounce. A breakdown below this zone could open the door toward the 127.2% extension (~$192) and potentially the 161.8% extension (~$177).

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3. Trend Context

The broader structure shows:

• A descending channel

• Lower highs forming since the November peak

• Repeated rejection near the upper trendline

This indicates short-term bearish momentum. However, if buyers defend the $204 level strongly, we could see a relief rally toward $220–$230.

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4. Bullish vs Bearish Scenarios

Bullish Case:

• $204 support holds

• Price reclaims $214 (78.6%)

• Break above $221–$226 confirms recovery attempt

Bearish Case:

• Clear breakdown below $204

• Momentum continuation toward $192

• Deeper correction toward $177 if selling accelerates

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Conclusion

AMZN is at a technically critical zone. The $204 level is the line in the sand for short-term structure. A bounce here could trigger a retracement rally, while a breakdown may lead to further downside toward extension levels.

As always, volume confirmation and broader market conditions will play a key role.

This content is for educational purposes only and not financial advice.