AMZN: A Plan for Next Swing Sell EntryAmazon has reached a new low at the $2050 level. The price is currently going through a strong bearish impulsive structure, which indicates that the bearish trend is still very valid. Therefore, we are only looking for sell opportunities after a retracement.
Our first area of interest is the previous support level of $2700. We can see that there’s also an unfilled gap there. Therefore, the price could retrace and retest the previous support level before dropping back to the new yearly low.
With that being said, we don’t trade to capture the retracement, meaning not trying to predict the bottoms from where the retracement might occur. We only trade after a retracement has actually occurred. All the stock indices are crashing so therefore, it is strongly advised to not predict the bottom and trade against the trend.
We have set the price alarm at $2670 level. If price gets there, we will then prepare our sell entries.
This is just a brainstorming idea post. Early preparation beats everything. Check out our other recent trend following stock ideas below :)
