Amazon could be in trouble folks. I saw this pattern yesterday and today's price action gives me conviction that what I saw was correct.
This chart is on the weekly time frame, so this is a long term play (likely months as opposed to weeks or days and not for day trading). There is clearly a double top that occurred and the support has broken down.
Today's price action was perhaps more to the downside than expected. Price really tanked and this type of move usually happens over a period of a couple of weeks or a couple of days. There might be a pullback to the upside over the next couple of weeks or so, but I am still bearish overall. Also, RSI was lower during the second top which is a good sign (if you are looking to go short).
Given what is happening with the market (bears in control) and increased international turmoil (potential Russian attack on Ukraine as one big factor) a continued move lower for Amazon is likely in the cards. However, if war does happen, making money in the stock market won’t be our priority…I’m getting off track here, back to stocks.
My long term price target is the black line at about 2,650. However, this should be seen as an area as opposed to a line. Price could go a bit lower (2,600-ish) or just miss my target by a couple dozen dollars or so (2,700-ish).
Currently the 200 MA is at 2,530 but once price comes to this area there will likely be some buying pressure (at least initially) and that is how I have come up with my price target. We don’t really know if this buying pressure (if it even comes), will be able to keep price above this key MA level and at this point it is too early to attempt to make a prediction on where it will go (either up or down) since we have to wait for this pattern to play itself out. That is all.
This chart is on the weekly time frame, so this is a long term play (likely months as opposed to weeks or days and not for day trading). There is clearly a double top that occurred and the support has broken down.
Today's price action was perhaps more to the downside than expected. Price really tanked and this type of move usually happens over a period of a couple of weeks or a couple of days. There might be a pullback to the upside over the next couple of weeks or so, but I am still bearish overall. Also, RSI was lower during the second top which is a good sign (if you are looking to go short).
Given what is happening with the market (bears in control) and increased international turmoil (potential Russian attack on Ukraine as one big factor) a continued move lower for Amazon is likely in the cards. However, if war does happen, making money in the stock market won’t be our priority…I’m getting off track here, back to stocks.
My long term price target is the black line at about 2,650. However, this should be seen as an area as opposed to a line. Price could go a bit lower (2,600-ish) or just miss my target by a couple dozen dollars or so (2,700-ish).
Currently the 200 MA is at 2,530 but once price comes to this area there will likely be some buying pressure (at least initially) and that is how I have come up with my price target. We don’t really know if this buying pressure (if it even comes), will be able to keep price above this key MA level and at this point it is too early to attempt to make a prediction on where it will go (either up or down) since we have to wait for this pattern to play itself out. That is all.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.