Almost any stock chart can illustrate important market dynamics. Some things are obvious. For example, stocks that are overbought or oversold tend to reverse. Another example is how they can reverse when they reach important price levels.
This can be seen on the chart of Amazon.com, Inc. AMZN. This is why it is the Stock of the Day.
The $180 level has been important for Amazon stock. There have been major reversals in the trend when it reached this level going back to July. In early October, $180 was a support level. This isn’t a coincidence. The level was support because it was resistance in late August and early September.
Resistance converting into support is a common occurrence in the financial markets. It is due to…
