Amazon has some pretty lofty analyst price targets, most around $1100 a share. But, the price appears to be setting up a descending triangle pattern, I'm not too familiar with this pattern but from what I understand its a pattern that suggests a downward break in price movement. I'll be watching this closely to see how price breaks out of the pattern. Looking for a break through the upper trendlines on RSI, Price, MacD or volume.
If you're more familiar with this pattern or things to watch for please feel free to comment.
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Looks to me that if we get one more green day we will be above the top resistance point and there could possibly be a macD cross. I'm curious if price will rally now into earnings, or trade in this wedge and breakout after earnings. From what I remember lots of tech tickers beat on earnings last quarter and were followed by a 5-10% drop, I'd be very surprised if that happened again.
Hey nice analysis.
As I saw in the book "Technical Analysis of the Financial Markets" by John Murphy.
This is ment to be a continuation pattern, also notice whats seems to be a bullish divercence in macD, Higher lows at macD while lowers lows at chart.
Let's at which direction does the chart break the triangle.
gingerheadtrader
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@ferran7, Thanks so much for commenting, I'd completely missed the divergence there in the MacD. So you're thinking this will be a continuation of the long term uptrend? That's what I was thinking as well, but wasn't sure how this pattern indicated that. For now we'll just assume its bullish.
ferran7
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@gingerheadtrader, yes! notice now how it broke the upper line of the triangle.
As I saw in the book "Technical Analysis of the Financial Markets" by John Murphy.
This is ment to be a continuation pattern, also notice whats seems to be a bullish divercence in macD, Higher lows at macD while lowers lows at chart.
Let's at which direction does the chart break the triangle.