AMZN, Mingling In Major Triangle, Meaningful Breakout Incoming!

Hello Traders Investors And Community, welcome to this analysis about the recent price-action in AMZN, the current formation and what we can expect the next time to take advantage of the opportunities arising. As the biggest online retail seller, AMZN was and is a clear profiteer of the corona-crisis as more and more people rely upon buying goods online than going the complicated way into a physical store, this just increased with the corona-restriction because people have to stay at home during lockdowns and therefore we saw an unnormal grows antyciclal to rest of the market during the corona-market-fears which seems to neutralize at the moment and there are some important signs that I discovered which will affect the further outcome of AMZN increasingly, therefore, we are looking at the 4-hour locally timeframe.

As you can see marked with the blue line AMZN is building a huger rising triangle formation which is in the most occasions a bearish reversal formation that is marking the top of an uptrend either major or minor and a bearish reversal to the downside, therefore we have a tendency to increase bearish pressure minimum on the short-term-perspective here, as we have still some support in the range we can expect a bounce from it to test the upper boundary of the rising triangle a fourth time as you can see marked in my chart. After that happens we have a high possibility to confirm the rising triangle bearish to the downside which needs to be confirmed with a clear break of the lower boundary from the rising triangle.

Although the immediate bullish continuation scenario is not more possible than the bearish it should be kept in mind mainly because AMZN had seen massive gains and high volatility before therefore a clear break of the higher boundary will invalidate the bearish scenario but as already mentioned the bearish scenario is within the higher likelihood spectrum but also in this case it is from high importance to wait on confirmation before placing a trade, which wise traders should almost always prefer. The bearish scenario can be traded aggressively or conservative, the aggressive approach is with an immediate entry and the conservative will be to wait after the formation confirmed clearly to the downside which is definitely the better option in this case, traders have to decide according to individual risk preferences.

The current situation on the local timeframe differs from the long-term view of AMZN which has still a bullish outlook especially in the corona-crisis with the lockdown-restrictions AMZN can sustain further and gain more as the number of people buying things online increases. We will see how this develops further and elevate if AMZN can establish its bullishness which it has seen before after this important correction to the downside. When this happens AMZN will be antycicylal to the rest of the market which has an overall bearish shape therefore it will be interesting to see if AMZN adds to this overall bearish market-environment or establishes a paradigm shift with new highs to the upside, whatever happens, traders should especially in these volatile times be prepared to possible changes in markets, take advantage of the highest possible setups and have the appropriate exit schedule in markets.

In this manner, thank you for watching, support for more market insight, and all the best!
Comfort and prosperity have never enriched the market as much as adversity has.

Information provided is only educational and should not be used to take action in the markets.