AMZN bear flag
Amazon is breaking down from a bear flag pattern which occurred with falling volume. The high volume decline in October found support at the gap around the $200 level. Next support levels at $190 and $180. Amazon is down with a down market, but it was weak the past few days when the overall market was strong. AMZN is so expensive, like MSFT, DELL, KO, AMGN and others were in the late 1990's, early 2000's, that they have a long way to go to grow into their valuation. I believe they will, but at the margin the internet sales tax and the lack of response lately to good news means that there aren't any fresh buyers to keep this stock afloat at these levels. AMZN is getting behind an internet sales tax. Stop loss for this idea is 3 average daily ranges or at least 14 pts. The downside targets are 21 pts and 31 pts. After 3 days the stop can tighten down to $220. Ideally, sell $214 where there are 9 days of supply to sell against.
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