AMZN has pulled back to a historically bullish trendline at the 24-month moving average
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Friday’s broad-market selloff brought tech giant Amazon.com Inc (NASDAQ:AMZN) down to its 24-month, or two-year moving average. Since 2005, pullbacks to this trendline have proved to be solid buying opportunities (except for 2008, 2020, and 2022).
The equity landed near the $175 region, which was the site of multiple highs in 2020-2021. Its Friday low at $166 also coincides with the April 2024 low, and is near the site of the last major put open interest (OI) strikes in the options expiring though standard April expiry.
With these layers of technical support in place, now looks like a good time to buy AMZN on the dip. Due to potential volatility because of earnings later in the month, the time stop is tight.
Our recommended call option has a leverage ratio of 6.0, and will double on an 18.8% rise in the underlying shares.