Speculative long trade along the theme we are witnessing the beginnings of a counter-trend rally. AMZN just completed an ABCD down move which coincides with a medium-term up-trend line (connecting Jan'15, Feb'16 & Oct'17 lows). While I do not know how aggressive this bounce is going to be, conservatively speaking, a 38.2% to 50% retracement would result in low teens return with clearly defined stops (ie. trendline violation). Anything beyond a 50% retracement would be icing and if I am wrong about this being a counter-trend rally, one would be riding this puppy to a new all time high. Good odds.
Trade closed: target reached:
Apologies for the late update, AMZN hit the 50% retracement level the Friday before. Time to take the profits and say thank you to Santa for the bounce.
