Amazon has been consolidating for almost 10 months. Today's news of a big beat on earnings and guidance has taken us to the top of the consolidation range.
It is a classic move for stocks that have been consolidating for a long time, to make a strong move upward before consolidating again. Making a measured move from the last time it did this, we get a potential target around $5000 in a 4-5 months time-frame.
To avoid a failed breakout, I would keep on eye on the MACD trend, which has turned positive, but should continue to rise to confirm the move up.
You dont think it will consolidate another 12 months like from april 2019 to April 2020?
dorfmanmaster
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Hi @Stockpuff,
I tried to answer this in May, but TradingView was not letting me comment or reply.
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Rather than anticipating the breakout, I am waiting for it to happen to enter a position.