$AMZN has been forming lower highs and lower lows (circled in red), recently fell out of its support range with a test upward.
Unsupported, given broad market weakness given by a negative McClellan Oscillator reading, Amazon looks ready to test its lower trendline. Expect lower highs and lower lows until a convincing break and hold of the downtrend line. The upcoming price pressure could push shares down to the $1,500 to $1,550 range, wherein a strong base could form to lift $AMZN out of its downtrend to have a realistic shot at breaking $1720 resistance with a retest of its all time highs in the second half of this year.
Unsupported, given broad market weakness given by a negative McClellan Oscillator reading, Amazon looks ready to test its lower trendline. Expect lower highs and lower lows until a convincing break and hold of the downtrend line. The upcoming price pressure could push shares down to the $1,500 to $1,550 range, wherein a strong base could form to lift $AMZN out of its downtrend to have a realistic shot at breaking $1720 resistance with a retest of its all time highs in the second half of this year.
Trade active:
This trade is still active, we had a temporary rally but we're still in a downtrend. Still expecting a break of the lower channel for a temporary bottom around the range outlined.
Trade closed: stop reached