AMZN is stuck between a significant resistance zone at 340-348 and a support zone down at 312.
The stock is coming off of a nice rally that got it up into overbought territory. I had made this chart last week for a sell against the 340-348 and somehow I didn't publish it - it was a hectic week last week. Either way, AMZN is in a defined downtrend and this rally to overbought was a signal to sell it short, once it broken under a previous day's low, which it did on Thursday last week (marked by the red arrow). The way to trade this is to cover it when CCI gets under -100. It would be nice if it did get oversold at the 312 support level because you could go long and risk just 1 average range, since you would be sitting on such an important support level.
Then you would target 340-348 to exit on your long position and then reverse and go short again.
I think this is a great setup for AMZN, so I am giving you the heads up now so you will be ready when the time comes.
Cheers,
Tim 324.70 -1.57 @ 1:03PM EST 6/16/2014
The stock is coming off of a nice rally that got it up into overbought territory. I had made this chart last week for a sell against the 340-348 and somehow I didn't publish it - it was a hectic week last week. Either way, AMZN is in a defined downtrend and this rally to overbought was a signal to sell it short, once it broken under a previous day's low, which it did on Thursday last week (marked by the red arrow). The way to trade this is to cover it when CCI gets under -100. It would be nice if it did get oversold at the 312 support level because you could go long and risk just 1 average range, since you would be sitting on such an important support level.
Then you would target 340-348 to exit on your long position and then reverse and go short again.
I think this is a great setup for AMZN, so I am giving you the heads up now so you will be ready when the time comes.
Cheers,
Tim 324.70 -1.57 @ 1:03PM EST 6/16/2014
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