Oooohhhh,.....getting a little nervous here......looks like AMZN is coiling up like a spring. Getting ready to explode in one direction or another. Staying long here but moving my stops up JUST IN CASE I am wrong on direction.
This is looking a bit worse by the hour....moving stops up a bit more. We may see an explosive move to the DOWNSIDE soon.....will tighten stops to almost entry price.
Breaking down.....WMT has a similar looking chart. Moved stop to $762.53 with a SHORT position if that number is hit. That gives me a tiny gain on my trade and a new SHORT position to capitalize on what I think is about to be an EXPLOSIVE move here. I do not usually update or revealing much of my thoughtsuits on trades for obvious reasons but since I started this thread I am going to continue this thread until the move is decided. I'll either lose a small amount if I wrong about a SHORT setting up here or win a BIG amount as I think this will be a fast move.
OH Boy,....I think we could be in for a very EXPLOSIVE day tomorrow in AMZN. This will be a longer post and for those that think TA is BS, move along. This is MY thread and MY assessment of the CURRENT situation in AMZN. Since I started this thread I will follow this move in AMZN to its conclusion and then the thread can die,...not even sure if anyone is reading this but here it goes... The following TA viewpoint will be my NEW thoughts on the LIKELY move in AMZN that is about to take off and catch many people by surprise. I am putting my TA skills on the line here to suggest what I think will happen. TA is NOT a crystal ball. It is not a predictor of what is going to happen. It only gives CLUES as to price momentum and likely areas of support and resistance. It is up to the technician to interpret the clues and make a trade from that. Keeping risks small helps you when you are wrong and allows appropriate Risk:Reward. If am wrong in this, so be it. I do not claim to be a pro and will trade according to my assessment. As you know I have been thinking we were at major support and forming a rising wedge as well as having Weekly MACD above ZERO and a rising Daily MACD which are all bullish indicators to continue the UP trend in AMZN. However, over the last couple weeks we have been rolling over and making lower highs and the rising wedge has started to resemble more of a pennant that shows price compressing to a point of the pennant. This shows price coiling like a spring with a sudden release of the springs energy in a particular direction. Until lately I have been thinking this was going higher. Now I am not so sure about that. Instead, I am fairly certain this will be a sudden move DOWN NOT UP. Currently I am LONG with entry price at $759.13. AS I saw this develop over the last few days I have moved my stop up to above breakeven. I have decided to move my stop to $760.53. IF this stop is hit I will also be taking a SHORT position at the exact same price. If that stop is not hit I will continue LONG. I do not usually have whipsaws and do not usually trade in opposite directions. This is only the 2nd time or so I have experienced this same situation and know from past experience people are LIKELY to be surprised as to what the hell just happened. I want to capitalize on that. I think AMZN is likely to have a 2% or greater move in a single day UP or DOWN before the end of the year and as early as tomorrow. WMT was exhibiting similar characteristics over that last few days and fell sharply today. I think the same will happen to AMZN. The same drop occured in multiple retailers today as well. So there is some more Sector evidence to suggest I am correct in my new position that AMZN will drop soon. My first price target for AMZN is $730 (EMA 200 and recent horizontal support line). It will likely find support there and I suspect we will have a bounce to the upper edge of the downtrend line to around $750 and one of 2 things SHOULD happen. We can get form an area of consolidation between $730-$780 and go sideways for a while OR we could drop again to what I have labeled as a TARGET ZONE on the chart below. That Target ZONE is $630-$650 by the end of February 2017. I am CURRENTLY favoring the TARGET ZONE assessment. What has changed? Well the upper edge of a rising wedge should get tested repeatedly before a breakout. That is not happening and we are now forming a pennant that is being tested over and over on the bottom edge of that right at support. Notice that when a trend line support is broken it is not necessarily meaning an uptrend is dead. Support lines often times fan out to a broader less aggressive upward slope (BLUE LINES on chart below). Going back farther to 2015 there is a rising trend line support that will meet up with the TARGET ZONE in early 2017 (LONG BLUE LINE on chart). Notice the downtrend line (Green & Red lines) also meets up with this zone at around the same time. This $640 target zone also is a 50% retracement of the recent UP move from Feb. 2016 lows to Oct. 2016 highs. Notice also that the UP move from Jan. 2015 lows to Dec. 2015 highs ALSO had a 50% retracement that took about 6-8 weeks to occur and was a sudden drop that first bounced at the EMA 200 and tested the breakdown and fell then to the lows in Feb. 2016. I think the SAME THING is about to happen but the EMA 200 is $730 now and also an area of horizontal support. Also, MACD (my preferred trend line indicator) has not started to show enough strength during recent pennant formation and has not remained bullish. It has started to weaken and daily MACD histograms are falling despite flat line prices and there is a bearish divergence forming on daily charts. MONTHLY charts also show weakness and MACD bearish divergences JUST like it did in Dec 2015. Hourly, 15 min, and even 1 min charts are showing compression of price to a tight range all indicating an EXPLOSIVE move is LIKELY to occur soon. I BULLISH BOUNCE off support should not be testing the support line as much as we have been doing. WE have been tapping the support line,....testing it for weakness,....and I think going to breakdown REAL SOON. So, I have moved my stops to $760.53 for a tiny gain to cover fees and will initiate a SHORT position at that same price if it's hit. My stop will be around $778 for that SHORT position. If this final assessment proves to be WRONG and I get whipsawed/stopped out on a move back up above $780 I will exit this trade and end this trade with NO further trade higher. I do NOT usually enter LONG then go SHORT. I just usually walk away if I am stopped out but I think this could be a very big opportunity so I am taking it. To everyone that has read this far,....Trade what you see......I am. Good Luck, Eganon
This is called fear of being long. When I see USPS trucks loaded with AMZN parcels, it tells me something else. AMZN is going to provide very competitive car insurance soon. AMZN is penetrating in areas where I never dreamed about. It is a strong buy. It will hit $1000 soon.
I for one read every word bro while trying to follow along on your chart. That took a lot of time and is GREATLY appreciated. I'd give ya 2 likes if I could.
Thanks. We will see what happens. So I was just Googling AMZN stock price to see what it was today and this was the latest Headline on AMZN. Great minds think alike..... https://www.google.com/amp/www.prof...inc-will-determine-amzn-stocks-next-move/amp/