Amazon hit a pre-market gap fill around $208 that’s already been touched, so the likelihood for a bounce there—at least a significant one—is much lower now that the level has been tested.
Gap fills tend to lose their effectiveness once price reaches them and doesn’t produce an immediate reversal, as the initial buyers who were waiting for that level have already shown their hand. Since this was pre-market, it can still pop during market hours at this gap fill, but dollar cost averaging is still possible.
If selling pressure continues intraday past this level, we could see a nice bounce around the $201 level which correlates with another gap fill that sits below the $208 zone.
This $201 gap fill represents the next meaningful support where buyers might step in more aggressively, especially if the stock has declined further from pre-market levels and is showing signs of being oversold.
Another gap fill sits around $9 lower at approximately $193, which is about 4% down from the $201 level and represents deeper support if the selling accelerates. The $193 gap fill becomes relevant if Amazon pushes through $201 without finding support, creating a scenario where the decline extends and brings the stock down to that next technical level where we have that gap in the previous trading activity.
Source: https://www.fxstreet.com/news/amazon-pre-market-gap-fill-touched-heres-the-next-support-lower-202603091359
