Looking at the previous trend line, NASDAQ:AMZN ranged between $3318 and $3251 for a few sessions before breaking out. Expecting a similar move this time where it rejects $3318 and range bounds until we get to ER which should be 22-23rd October. If it breaks $3251 watch for a bounce at the trend line. Of course a single tweet can invalidate the trade idea.
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AMZN smashed through $3318 on Prime Day hype and we can see evidence of "sell the news" that took place post prime day. Nice bounce today to close over $3318. Setting up for a killer move heading into ER.
Trade closed manually
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AMZN had good ER numbers however, it still got pulled down due to market sentiment. Trade closed with a loss.
@MangoKhan, totally! Based on last year's Prime day though, it was a "sell the news" event. I'm expecting something similar this time but we should rally going into ER. Although expectations for Amazon are sky-high with the lockdowns and potentially a fresh round of lockdowns with the second wave of COVID-19.