There’s a good chance shares of Amazon.com, Inc. (NASDAQ:AMZN) could make a big move over the next few days.
AMZN has reached an important resistance level. When stocks reach these types of levels, they usually break through or roll over and sell off. They typically don’t spend too long trading around resistance levels.
At the end of April, AMZN reached the $3,500 level. It traded there for two days and then a steep selloff followed. Now the stock has reached this level again.
If the shares break the resistance, it means the sellers who created it are gone. With this large amount of supply out of the way, the stage is set for a move higher.
But if AMZN can’t break through, there’s a good chance the bears target it again and drive it lower like the last time.
