A falling knife - don’t catch it

Analysis on 4H Chart (April 2025)


Amazon (AMZN) experienced a sharp sell-off, currently trading at $171.05, down -7.41% on the session. This 4H chart shows a significant bearish movement, and there are clear signs of trend continuation if key support zones don’t hold.

• Current Price: $171.05
• Weekly Pivot S3: $182.61 (Broken convincingly)
• Next Major Support: Psychological level around $165, and volume profile shows thinning in that region — potential for rapid drop if $170 fails.
• Resistance Levels:
• R1: $196.94 (Pivot)
• R2: $205.79
• R3: $211.27 (Aligns with previous highs)

Volume Profile:
• Sharp increase in bearish volume on the breakdown – confirms strong selling pressure.

• Price has breached the lower Bollinger Band decisively — could mean oversold in the short term.


Trade Ideas

Short-Term Bearish Continuation
• Entry: Below $170 on a retest and rejection.
• Target: $165 (1st target), $160 (2nd target).
• Stop: Above $175

Happy trading