Amazon getting ready for another leg down

Mar 14

Amazon is now in consolidation mode right below the 200MA which also happens to line up with a previous area of resistance. As long as it continues to consolidate below the 200MA, look for another leg down. If it breaks above the 200MA and closes an entire candle above then that would cancel the bearish set up.

Nothing good ever happens below the 200

Jun 20

Trade active

Its been a few months since I updated this one. Over the past few months, Amazon did indeed come down and has since been forming this nice bearish wedge pattern and broke down below it this week and tested the underside of the wedge a few times as resistance before getting rejected. A measured move of the bear flag/wedge puts a price target at around $130 per share. I drew a Fibonacci from the swing high to the swing low and the -0.382 Fib level also lines up with this area. I love how these levels and trend lines all seem to line up with each other giving me added confluence of the trade.

Jun 30

Trade closed: stop reached