💡Trade Idea – Wed. 7/2/25 Deep Dive: Amazon.com Inc. (AMZN)

Breaking Down the Chart and Mapping Out the Trades

Hey traders and investors,

Today’s Daily Play is all about Amazon — a name everyone knows, but the chart might surprise a few people. I’m diving into the latest setup on $AMZN, breaking down what’s happening technically, and showing you how I’d approach this from three angles: short-term trader, longer-term investor, and of course, how I’m playing it with options.

We'll go over support, resistance, trend signals, and indicators — all in plain English. And yep, I’ll call out the key areas that matter most right now, and how they line up with the bull put spread I’m holding.

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📰 What’s the Story with AMZN Lately?
Amazon has been in the headlines recently after announcing another expansion in its AI-driven logistics network, aiming to cut delivery times across North America. At the same time, it’s ramping up its advertising business, which is quietly becoming a major profit center.

Add that to solid e-commerce numbers and a steady stream of Prime subscriber growth, and it’s clear the fundamentals are still strong. The market seems to agree — AMZN has been quietly climbing the ranks with consistent higher highs.

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🧭 Chart Breakdown: Let’s Look Under the Hood

Here’s what stands out to me on the daily chart:

• Price Action: Amazon’s been stair-stepping higher in a pretty clean uptrend. It’s trading above both the 50-day and 200-day SMAs — always a good sign. The 10-day SMA is trending higher and offering soft support around $215.

• Support Zones:

  • First key support is $217.61 — not far from where it closed. That’s the 10-day SMA area and should offer the first bounce if price dips.

  • Below that, stronger support sits near $191.61 — that’s a ways off, and would mean a bigger trend shift.

• Resistance Levels:

  • The next target to the upside is $235.61 — short-term resistance from a consolidation area in March.

  • Above that is $242.52 — which lines up with the 52-week high. That’s your ceiling for now.

• RSI (Relative Strength Index): Currently at 62. This is a healthy level — not overheated, but strong enough to show there’s still buying interest.

• MACD (Moving Average Convergence Divergence): Bullish crossover still in place, although momentum is starting to flatten a bit. Still trending positive.

• Stochastic Oscillator: Sitting at 83 — that’s overbought territory. Could signal some short-term consolidation, but it’s not an automatic sell. Just something to be aware of.

• Volume: Light but consistent. No major distribution days, which suggests no institutional unloading yet.

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🛠️ Trade Setups: Here’s How I’d Play It

Let’s break it down by style: Position Trader, Investor, and Options Trader