AI
Saturday, May 23, 2020 7:24:38 PM
Hi Ron. I've been reviewing charts this afternoon and built this one for AMZN. I don't see anything immediately disturbing but I see technical indicators advising caution.
1. The chart is forming a rising wedge which tells us that sellers are progressively taking profits more quickly. If they were not, AMZN would form a channel where both the top line and the bottom line were moving up at the same pace. What you're watching for is any movement below the bottom channel. That would signal a possible reversal.
2. About May 1st, MACD signaled weakness. Since then pricing has stayed in the bottom of the wedge. That's strike two.
3. OBV has been rising and massively positive. If this turns down, and volume stays down, that means the institutional money is exiting and retail traders are taking those positions. This could play out for another month or it could reverse quickly. Just keep your stops tight.
It will be fun to watch this one play out.
1. The chart is forming a rising wedge which tells us that sellers are progressively taking profits more quickly. If they were not, AMZN would form a channel where both the top line and the bottom line were moving up at the same pace. What you're watching for is any movement below the bottom channel. That would signal a possible reversal.
2. About May 1st, MACD signaled weakness. Since then pricing has stayed in the bottom of the wedge. That's strike two.
3. OBV has been rising and massively positive. If this turns down, and volume stays down, that means the institutional money is exiting and retail traders are taking those positions. This could play out for another month or it could reverse quickly. Just keep your stops tight.
It will be fun to watch this one play out.
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