AMZN after the solid ride for the upside went to resistance and got smashed very hard. Resistance is too strong for now and likely for some time. There is BigRed plus a falling upper trend line from the pattern. It is in a falling wedge pattern which when it breaks out will be very bullish. Because of that hard rejection from resistance, it is a sell signal for AMZN.
It is above 20 and 50 days MA which BigRed is still too big resistance for AMZN, especially for such weak financial results.
Volume was explosive and represented pure capitulation on the upside.
RSI did start to cool down after extremely overbought territory.
MACD is in overbought territory and starts to cool down.
Overall: for now resistance is too strong for AMZN. For any bull chance to break out of the falling wedge price should fall to the 94 to 98# area or 0.618 and 0.5 Fib retracement before it tries to break again. There would also be 20 and 50 days MA which could act as support and which could help AMZN to start moving up again.
If support doesn't hold next one is low at 81.6$.
There is an 80% chance we will see a lower low during the first half of the year.
It is above 20 and 50 days MA which BigRed is still too big resistance for AMZN, especially for such weak financial results.
Volume was explosive and represented pure capitulation on the upside.
RSI did start to cool down after extremely overbought territory.
MACD is in overbought territory and starts to cool down.
Overall: for now resistance is too strong for AMZN. For any bull chance to break out of the falling wedge price should fall to the 94 to 98# area or 0.618 and 0.5 Fib retracement before it tries to break again. There would also be 20 and 50 days MA which could act as support and which could help AMZN to start moving up again.
If support doesn't hold next one is low at 81.6$.
There is an 80% chance we will see a lower low during the first half of the year.
Consistency is the key of success....
