AI
Monday, July 09, 2018 12:17:17 PM
Amazon.com $AMZN Trade Setup Alert
Shares of Amazon.com Inc. (AMZN) continue to grind higher. However, unlike stocks like Facebook (FB) and others, it has not made a new all-time high in recent days. In fact, Amazon has a classic bear flag wedge pattern formation on the daily stock chart. This signals a likely sharp drop in the coming month, possibly on an earnings miss. With the chart setup being strongly bearish, there is a classic way to swing trade the stock. Look to short at current levels of $1,730, with a stop on any daily close above the all-time high of $1,763.10. This allows for a tight, less-than 2% stop. The downside reward is fantastic, with the calculated target from the bear flag being $1,520. This is a 12% profit. A risk/reward trade setup like this is what the big players look for when swinging the market. Enjoy!
Gareth Soloway
InTheMoneyStocks
Shares of Amazon.com Inc. (AMZN) continue to grind higher. However, unlike stocks like Facebook (FB) and others, it has not made a new all-time high in recent days. In fact, Amazon has a classic bear flag wedge pattern formation on the daily stock chart. This signals a likely sharp drop in the coming month, possibly on an earnings miss. With the chart setup being strongly bearish, there is a classic way to swing trade the stock. Look to short at current levels of $1,730, with a stop on any daily close above the all-time high of $1,763.10. This allows for a tight, less-than 2% stop. The downside reward is fantastic, with the calculated target from the bear flag being $1,520. This is a 12% profit. A risk/reward trade setup like this is what the big players look for when swinging the market. Enjoy!
Gareth Soloway
InTheMoneyStocks
