Amazon - Long PositionEntry Point: Our analysis suggests that a compelling entry point for Amazon's stock would be when its value tests the established trend line. This approach aligns with the concept of buying when the price is in close proximity to a confirmed trend line, indicating potential support and a possible reversal or continuation of the prevailing trend.
Stop Loss (SL): To manage risk effectively, we recommend setting a Stop Loss (SL) level at 2 percent below the entry point. This provides a safety net to limit potential losses in case the market moves against our trade. By capping the downside risk, this strategy aims to safeguard your investment.
Take Profit (TP): To maintain a balanced risk-reward ratio, our analysis suggests setting a Take Profit (TP) level at 2 percent above the entry point. This represents the potential reward you could capture if the trade unfolds in your favor. By targeting this percentage, you ensure that your potential gains outweigh the potential losses, promoting a favorable risk-reward profile.
AMZN trade ideas
The Amazon Enigma: A Market in Transition While the prevailing sentiment among financial analysts leans toward Amazon's stock being a solid buy, I harbor a degree of skepticism, primarily driven by a divergence between technical analysis and the consensus among analysts, especially in the medium term.
Central banks across the globe have taken unprecedented measures to combat rising inflation, primarily through increasing interest rates. However, the intriguing aspect lies in the stock market's reaction, which has seemingly defied the traditional negative correlation with rising interest rates, continuing to surge despite the elevated rates. My conviction, however, is that this bull trap may not persist indefinitely, and a market correction may be on the horizon.
Examining Amazon from a technical perspective reveals compelling insights. It seems like the stock may have wrapped up a significant cycle, completing five upward waves. Notably, during this stock market rally, Amazon failed to retest its prior highs. Furthermore, when we consider the historical yellow trendline I've drawn, there is evident evidence of a breach followed by a retest. This retest, notably occurring at the 61.8% Fibonacci Retracement level, holds particular significance as it is widely acknowledged as a pivotal point to monitor.
While the impact of elevated interest rates has not been immediately pronounced, historical data underscores the prevailing negative correlation between interest rates and stock market performance. Short-term bullish episodes often serve as precursors to significant market shifts. It is crucial for traders to remain vigilant in light of the prolonged overvaluation of the markets. The prevailing tech and AI bubble, I contend, may be nearing its culmination. Prudent preparation is advised.
There's a growing sense in the financial landscape that we could be on the cusp of witnessing a significant rotation of capital. As riskier, potentially overvalued stocks tread uncertain waters, investors may increasingly turn their attention to assets that are both underrated and safe. This shift seeks out equities with solid valuations, robust performance records, and the promise of stability. In times of market flux, such a rotation often reflects a prudent strategy, a recalibration of portfolios toward assets that offer both resilience and growth potential.
In essence, my perspective leans toward a more cautious outlook, predicated on both technical analysis and the historical interplay between interest rates and market dynamics.
XRP Comparison to Amazon's price history!
It's been a long time since I posted a chart.
I remember all to well holding AMZN as an asset during this time period... I remember, vividly, thinking how BIG it was gonna be, but almost in disbelief that price was doing nothing, and to be honest, it was a GRIND just to hang on! Holding XRP as an asset, in so many ways, has the exact same feeling!!!
While there will always be differences when comparing two assets side by side, it's the subtle similarities that I find important! For XRP, it's all about conquering this current cloud cover that it has 'nested' itself under. In addition, I think in the short term, the price that may provide some resistance is $1.03.
Cheers!
AMZN Bear trap??Took just a day to trade below 130 support after falling outside bullish channel. Unfortunately I took my profits the day prior. Although HMA is bearish, we are in heavy oversold territory and looks like it could be a bear trap. Selling a 135C and 125P strangle could be a good idea as I foresee AMZN trading in this range short term.
AMZN, Decisive H-S-FORMATION, Setup For BROADER PULLBACKS!Hello,
Welcome to this analysis about AMZN and the 4-day timeframe perspectives. Since major stocks in the stock market such as PYPL or FB recently showed up with heavily increased volatility bearish pullbacks to the downside the advance-decline line of the whole averaged stock market is declining which means that a pullback in the other bigger market cap stocks such as AMZN is increasing the more other stocks follow these developments, this can also lead to increased volatility to the downside in which the whole market turns to the downside. Therefore it is necessary to do not keep this scenario from the desk and consider the technicals to rightly prepare and also possibly catch opportunities in this market environment. Therefore when looking at my chart, we can watch there how AMZN is now building this main head-shoulder-formation with the left shoulder and the head already completed. Now with forming the right shoulder, AMZN has a huge resistance within the main Upper-Resistance-Cluster which is marked in red in my chart, in this case, there is a high possibility given that from there on AMZN pulls back to the downside which will show the origin of final completion of the head-shoulder-formation. Once AMZN has completed the head-shoulder-formation bearishly below the neckline as seen in my chart this will activate lower target-zones shown in my chart at the 1980 level marked in black, once these levels have been reached it will be determining on if AMZN holds these levels or just sets up for a continuation. If AMZN breaks below these targets and into the Bearish-Continuation-Zone marked in red this will lead to a Wave-C-Extension down the line, in any case, it is necessary to keep the bearish perspectives in mind and be prepared on these dynamics.
In this manner, thank you for watching the analysis, all the best!
"There are many roads to prosperity, but one must be taken."
Information provided is only educational and should not be used to take action in the markets.
AMZN closes outside channelAmazon has been trading in the same bullish channel since March of this year. Today it closed just outside of it, however 135 is a good level of support as it goes back to March of 2022. If it fails next level is 130. HMA and stochastic is bearish, but is entering oversold territory. Tomorrows candle will be a good indication of short term trend.
Last Friday I opened a short postilion (145 puts). Closed on Tuesday for 40% and 60% profits.
Back in channel, bullish.
Trades outside channel, bearish.
Should You Buy AMZN Now??Technical Analysis:
- AMZN is still doing a WXY medium term correction in blue
- In the short term AMZN is finishing wave ((3)) in black of ((5)) waves to complete wave (X) in blue
- We expect that the correction will be finished at around
70 when wave ((II)) in black is also completed
- H1 and H4 right side is up
Technical Information:
- Don't buy AMZN now
- If you're either a swing or position trader, you can buy when the correction WXY is completed around 70
Watching AMZN break of 139.64 for continuationThe headline chart is a 15 min chart, but it's easier to see what's really happening on the 5 min chart where it broke a wedge downwards and remains to reject entry back into the trend:
I'll be watching for breakdown entry under 139.64 only if it retests it and confirms resistance. I would be looking for 138ish.
Already played NASDAQ:AMD for +20% today. Continued to +50% on strength.
Welcome to follow for more insights.
Of course, this move is cancelled if it breaks 139.98 and becomes support. Thanks for reading.
Head and Shoulders AMZN LONG $$$AMZN has recently demonstrated an uptrend until a sudden momentum change on 9/19. The current resistance level (neckline) is set at $145.05. With the beginning downtrend, the stock sets up a short position from the neckline to roughly $102. Following a reversal from support of the previous shoulder, a long position forms and AMZN exits the pattern.
MacD and SQZMOM are indicative of a trend reversal while RSI is indicative of an overbought condition.
In the broader market context, many major stocks have recently experienced significant corrections, followed by impressive rebounds, eventually reaching new 52-week highs. This pattern may serve as a template for what could happen with AMZN after this inverted head and shoulders formation.
Possible Long positions and Short positions look like this:
Remember to put your stop losses after the last low!
AMZN: there's strong support here, but I'll wait for TL touchThis would likely be a daytrade or 1-2 day swing when this transpires anyway.
If I miss out on the reversal, it's better than entering too early.
One strategy is to enter slow, but that can be detrimental if you don't know what that means and if you don't have discipline.
Also there's a h/s on the 4hr candle-chart. So I'll wait.
Look at my AMZN short from yesterday. Paid well and hit targets. Puts are at least +100%.
Diagonal ! Wave 4 ?Greetings everyone,
I hope you've had a productive week with successful trades. I wanted to share some of my ideas on the Elliott Wave Principle. It's crucial to make informed decisions and exercise patience in all transactions.
As per a quote from (J.F.), a professional analyst of the Elliott wave principle, amateur traders tend to focus on the possibilities that may happen while professional traders focus on the possibilities of what is happening.
My recommendation is to bear in mind that, after making a trade, the primary responsibility of the trader is to minimize risk, eliminate it, and ultimately preserve the profits earned.
Thank you for your continued support, and I'm excited to continue our journey together.
Sincerely,
(Mr.Nobody)