Amazon as well as other main publicly-traded US stocks have recently been mimicking the movement of US indices: a 15% fall, quick recovery and possible dead cat bounce, which could lead the market move even lower (even below the recent lows). In this environment, short bias can bring many opportunities on which traders can capitalize.
I have already mentioned how Tesla is setting up for a short position and how Apple could too.
For example, a recently signalled short position can be opened on Amazon as it gets rejected by the 50 MA and does not seem to be able to break and hold above its resistance levels (in red). Not only, but Amazon seems to be breaking away in a relatively abrupt manner (-3.59% for week close).
Now, either the whole movement is a minor correction, or a trader could decide to short Amazon below its most recent lows when the price breaks the 66% Fibonacci (blue line) level and a possibility of correction is eliminated. Until that point, a short position should be rather speculative.
Please note that US indices should be kept under control for any forms of collective change in trends. In other words, if the US 500 index changes sentiment, then we can expect Amazon to do the same.
NOT FINANCIAL ADVICE!
I have already mentioned how Tesla is setting up for a short position and how Apple could too.
For example, a recently signalled short position can be opened on Amazon as it gets rejected by the 50 MA and does not seem to be able to break and hold above its resistance levels (in red). Not only, but Amazon seems to be breaking away in a relatively abrupt manner (-3.59% for week close).
Now, either the whole movement is a minor correction, or a trader could decide to short Amazon below its most recent lows when the price breaks the 66% Fibonacci (blue line) level and a possibility of correction is eliminated. Until that point, a short position should be rather speculative.
Please note that US indices should be kept under control for any forms of collective change in trends. In other words, if the US 500 index changes sentiment, then we can expect Amazon to do the same.
NOT FINANCIAL ADVICE!