Amazon stock has largely been trading sideways for the better part of 5 months, I've noticed this symmetrical triangle pattern which failed to break to the upside on February 2and. On February 25th a daily candle closed below the trendline support of this triangle. After a fall down to 2878 AMZN will likely look to retest this trendline as resistance. If we breakdown again or come up short of the trendline this could provide a good opportunity for a short trade. The expected measured move of this triangle is 24.61. My target for this short trade is 25.25 as I expect this to be the next place of decent support that is close to the measured move of this triangle breakout. I will set a stop at 3376. I will enter this trade between 3166 and 3209. I'm seeing a lot more potential short trades on FAANG stocks, even though everyone is patting them selves on the back because of higher highs in the broader market. I don't think we are out of the woods yet!
Comment:
Shorting against todays close with a stop loss at 3340 could be a good setup this trade is still in play.