Amazon $AMZN is setting up in a reversal zone
Even though Amazon
AMZN
and the many momentum names fell on hard times the last three months, AMZN is in a potential reversal zone and showing signs of accumulation. First, there is a lot of support in the 1900 area from broken resistance and the early June low. Second, the July to October decline retraced around 50% of the prior advance. This could be a two steps forward and one step backward sequence. Third, a falling wedge formed and these patterns are typical for corrections within a bigger uptrend. Taken together, the 50% retracement, falling wedge and support zone make this a potential reversal zone. Also note that AMZN opened near the low and closed near the high on Friday with huge volume. In fact, the close has been above the open for three days now and all three days featured good upside volume. AMZN looks primed for a reversal here and a breakout at 1800 would provide the first sign of a trend reversal.
AMZN
and the many momentum names fell on hard times the last three months, AMZN is in a potential reversal zone and showing signs of accumulation. First, there is a lot of support in the 1900 area from broken resistance and the early June low. Second, the July to October decline retraced around 50% of the prior advance. This could be a two steps forward and one step backward sequence. Third, a falling wedge formed and these patterns are typical for corrections within a bigger uptrend. Taken together, the 50% retracement, falling wedge and support zone make this a potential reversal zone. Also note that AMZN opened near the low and closed near the high on Friday with huge volume. In fact, the close has been above the open for three days now and all three days featured good upside volume. AMZN looks primed for a reversal here and a breakout at 1800 would provide the first sign of a trend reversal.
Comment:
....s/b lot of support in the "1700" area....
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-Arthur Hill, CMT
-Arthur Hill, CMT