timwest
Short

Amazon AMZN rising wedge pattern

NASDAQ:AMZN   AMAZON COM INC
627 9 18
AMAZON AMZN            

Rising wedge?

Could it be? The rising wedge is a rare pattern that implies exhaustion of all potential buyers and an imminent continuation of the previous downtrend, which was a violent decline on the quarterly revenue report (not an earnings report, because earnings have yet to matter for Amazon).

I am intrigued about this pattern setting up now as the price hike for Amazon Prime didn't create much of a stir for the stock and therefore I'd guess that long-term holders may just be taking some money off the table here, which is keeping pressure on the shares, compared to the market overall.

The bloated valuation of Amazon makes the stock a "source of cash" for the upcoming year as portfolio managers can easily find other stocks with more visible earnings streams to switch into.

I have no idea what specific catalyst will make AMZN             come under pressure and in all likelihood this projection is extreme looking and just a technical aberration. If AMZN             can climb up towards the massive distribution area at 385-395, then a much lower risk-reward trade will set up. From here the risk is $13 to make $38 (on a drop to $330) but the odds of this pattern happening are low, maybe less than 20% chance. However, I wanted you all to see this setup anyway.

Tim 1:49PM EST 3/20/2014 368.91 last
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Nashwan PRO
2 years ago
Agreed with you ,,,, we have a Harmonic pattern too
Butterfly Indeed

Amazon in Bearish Pattern
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timwest PRO Nashwan
2 years ago
Nice going!
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TradeVulture.com
2 years ago
Funnymentals don't really matter here. AMZN simply followed the laws of price action. You must first retest what you lost and fail before you can go lower. I'd expect a pop off the wick there at 337.5 to retest support lost at about 344 before going to 330.
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TradeVulture.com TradeVulture.com
2 years ago
Pretty damn close to what I said should happen...
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Barker
2 years ago
I like the fact that you mix some fundamental ideas in with your technical setup.
Here is my over simplified view on this setup.
My simplified view of AMZN. Thanks Tim...
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timwest PRO Barker
2 years ago
Thanks Barker.
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carlos19866
2 years ago
I have seen this same pattern in pros expectations. They are targeting 320.
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timwest PRO carlos19866
2 years ago
Ok. Thanks.
Reply
vaicru PRO
2 years ago
beautifull !!!
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