Can the trend hold up for AMZN?
Probably not, given all the headwinds that lie ahead... but still, the long-term trajectory looks suitable in terms of risk for Amazon.
I project the current bottom to be around $80, in the worst case.
It could be a $225 stock in the next bull run, according to price calculations.
This presents a 3:1 RR opportunity even if you dump all your money in come Monday.
Dollar cost averaging will yield much better results.
In following my specific analysis, my DCA strategy would consist of five incremental purchases of $8.70 :
5% BUY @ MKT
10% BUY @ 107.76
20% BUY @ 99.06
30% BUY @ 90.36
35% BUY @ 81.66
This will setup investors with an average price of $91.05, which would be only 11% above market price should AMZN's correction continue to 81.66.
This is compared to the -40% you would be down if you purchased your entire position Monday and price eventually corrected toward 81.66.
Agree, disagree? Feel free to discuss in the comments!
Thank you all for stopping by.
HOW LEVELS ARE CALCULATED: This analysis derives from a strategy I've put together over the past few months, based mostly on using the Bollinger Bands to generate future key market levels. All support and resistance levels are calculated based on the volatility of a specified time / price range. In this example, the base S&R points used are marked in blue. A video explanation can be provided at some point if there's interest. . it is a relatively simple strategy that has yielded surprisingly accurate key levels, well out into the future.
Please leave a 'LIKE' if you found value in the analysis!
I project the current bottom to be around $80, in the worst case.
It could be a $225 stock in the next bull run, according to price calculations.
This presents a 3:1 RR opportunity even if you dump all your money in come Monday.
Dollar cost averaging will yield much better results.
In following my specific analysis, my DCA strategy would consist of five incremental purchases of $8.70 :
5% BUY @ MKT
10% BUY @ 107.76
20% BUY @ 99.06
30% BUY @ 90.36
35% BUY @ 81.66
This will setup investors with an average price of $91.05, which would be only 11% above market price should AMZN's correction continue to 81.66.
This is compared to the -40% you would be down if you purchased your entire position Monday and price eventually corrected toward 81.66.
Agree, disagree? Feel free to discuss in the comments!
Thank you all for stopping by.
HOW LEVELS ARE CALCULATED: This analysis derives from a strategy I've put together over the past few months, based mostly on using the Bollinger Bands to generate future key market levels. All support and resistance levels are calculated based on the volatility of a specified time / price range. In this example, the base S&R points used are marked in blue. A video explanation can be provided at some point if there's interest. . it is a relatively simple strategy that has yielded surprisingly accurate key levels, well out into the future.
Please leave a 'LIKE' if you found value in the analysis!
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