A head and shoulders
pattern has emerged on AMZN
. Similar to the H&S
patterns found in other equities and indices this patterns represents a market reversal. Though the pattern is more clear when viewed on a the daily chart
, I used the weekly to show how the targets of support lines (dotted white), match up with the long term trend line
(solid white) as well as the % of change for the H&S
. Head and shoulders
patterns usually retract by about the same percent that they increased. In this case it is about 40%. The intersection of support, trend and percentage gives a good indication of how low this stock is likely to go. Yellow area is target..