Stuck in a range, Bollinger Bands narrow
Still range bound for now. This is what is needs to go higher:
AMZN is still range bound in this pennant/triangle until there is a close above $436.90 (MAY 21st high) or $439 (MAY 11th high) before it can breakout and test that $452 all-time high.
Buying a June expiry 440/450 Call debit spread for $2.00 or lower would be a nice 1:4 risk:reward scenario. And you risk the debit paid if it never gets up there. 22 days until expiry from today gives it time to play out. The MACD is drifting lower.
The narrow BB indicates a bigger move is likely but it could also fill the gap lower around the $396 area. It would have to blow through the $414.55 low on May 6th to do that. Path of least resistance is higher.
AMZN is still range bound in this pennant/triangle until there is a close above $436.90 (MAY 21st high) or $439 (MAY 11th high) before it can breakout and test that $452 all-time high.
Buying a June expiry 440/450 Call debit spread for $2.00 or lower would be a nice 1:4 risk:reward scenario. And you risk the debit paid if it never gets up there. 22 days until expiry from today gives it time to play out. The MACD is drifting lower.
The narrow BB indicates a bigger move is likely but it could also fill the gap lower around the $396 area. It would have to blow through the $414.55 low on May 6th to do that. Path of least resistance is higher.
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