So what does AMAZON do now?! We have a huge resistance above us at the 2000 - 2050 level which you can see in striped red in the chart. This is a critical zone for AMAZON because when we get rejected there, the possibility for an gets nearer. You can also see this huge red selling at the break-out of that important trend-line signaling a shift in price action and heavy selling . If the highly possible scenario that we get rejected a second time at the 2000 - 2050 level kicks in a will form with targets at 830 - 840, you can see it on the chart with price projection.
Also the sets some tone for the overall outcome, you can see in my chart that it touched the overbought area several times the last years without coming back. Now struggles to make new highs in the overbought are and is consolidating in the middle range, a possible scenario is here when we see new decline in the price that also falls back out of the channel which you see in the chart.
The overall tone is despite that AMAZON makes some bull-moves the last time. Normally you see this on a top before other declines happen. The fact that this major which held for 3.75 years is broken makes the big picture for AMAZON look ugly.
But, however, as traders we can also make money with falling prices. But this andvantage should not be taken for granted, it should be done smart and with the right look for market conditions!
I hope you enjoyed this analysis on AMAZON! See you.
Information provided is only educational and should not be used to take action in the markets.
Amazon goes to 830-840 because it may create a double top formation???? That's a bizarre idea! Even education wise, this is not a good example to show people.