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.
Trade active
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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.
Excellent bright observation, supplemented with indicator awareness
Negative McClellan Oscilltor readings DO bring down the perceived strongest. AMZN qualifies.
Chart presentation shown is extremely busy, with lines running/thru across each other.
Lower trend line you are referring to I take it is between 1550-1500.
vergun
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@The_Unwind, thanks for the feedback! I’ll incorporate this feedback on any future charts.
Negative McClellan Oscilltor readings DO bring down the perceived strongest. AMZN qualifies.
Chart presentation shown is extremely busy, with lines running/thru across each other.
Lower trend line you are referring to I take it is between 1550-1500.