[Analysis] Amazon, chase but account for a possible retrace
Amazon! Finally broke out from its almost 1 year long consolidation period!
The good news is, look at Mar 2020, the Rally seems to be pretty strong after the consolidation.
There is only one problem. You have to hold and be in position!
From Jan 2020 to Mar 2020, Amazon does a very sneaky false breakout, then a false breakdown, then a true rally.
During this period, many retailers who were in position would have been stopped out should their lot sizing and/or stop loss level is incorrect.
As such, for this run-up, we need to plan for the possibility of such a sneaky move again.
You have 2 options
1) Place your stop loss below 3200, the immediate current support.
2) If you are more conservative. You can place your stop loss below the major support at 2850. However, to account for the wide stop loss, adjust your lot sizing accordingly.
You can always chase the price. But do so wisely!
The good news is, look at Mar 2020, the Rally seems to be pretty strong after the consolidation.
There is only one problem. You have to hold and be in position!
From Jan 2020 to Mar 2020, Amazon does a very sneaky false breakout, then a false breakdown, then a true rally.
During this period, many retailers who were in position would have been stopped out should their lot sizing and/or stop loss level is incorrect.
As such, for this run-up, we need to plan for the possibility of such a sneaky move again.
You have 2 options
1) Place your stop loss below 3200, the immediate current support.
2) If you are more conservative. You can place your stop loss below the major support at 2850. However, to account for the wide stop loss, adjust your lot sizing accordingly.
You can always chase the price. But do so wisely!