AMZN: What to do if a pullback occurs?
Hello traders and investors! Let’s see how AMZN is doing today!
The trend is clearly bullish, the 21 ema is going up, and it is above the yellow line, which was a previous resistance for the stock.
Today is moving sideways, it seems a healthy time correction, letting the 21 ema to approach the price. It seems AMZN is resting a little before it fills the Breakaway Gap (Sep. 3).
We may have a Pennant chart pattern; an upwards breakout could lead AMZN to new highs. On the other hand, if we see a downwards breakout, we may see a pullback. The targets for a pullback can be seen better in the daily chart:
Keep in mind that AMZN just triggered an Inverted H&S pattern, and the target for this pattern is the All Time High.
But a pullback triggered by the Pennant in the hourly chart could lead AMZN to the 21 ema or to the 3,225 again, and the trend would still be bullish. When we talk about H&S patterns, studies reveal that pullbacks occur about 2/3 of the time after the pattern is triggered.
It left a gap on Monday, which we still can’t be sure about what type gap is, so let’s keep this point in mind as well.
Yesterday’s candlestick was very bullish, and the volume was pretty high. I wonder if this is an Exhaustion Bar after an Exhaustion Gap. Either way, pullbacks are acceptable and even desirable.
If you liked this analysis, please, support it! And follow me to keep in touch with my studies and updates! Let’s watch AMZN closely from now on!
My best regards.
The trend is clearly bullish, the 21 ema is going up, and it is above the yellow line, which was a previous resistance for the stock.
Today is moving sideways, it seems a healthy time correction, letting the 21 ema to approach the price. It seems AMZN is resting a little before it fills the Breakaway Gap (Sep. 3).
We may have a Pennant chart pattern; an upwards breakout could lead AMZN to new highs. On the other hand, if we see a downwards breakout, we may see a pullback. The targets for a pullback can be seen better in the daily chart:
Keep in mind that AMZN just triggered an Inverted H&S pattern, and the target for this pattern is the All Time High.
But a pullback triggered by the Pennant in the hourly chart could lead AMZN to the 21 ema or to the 3,225 again, and the trend would still be bullish. When we talk about H&S patterns, studies reveal that pullbacks occur about 2/3 of the time after the pattern is triggered.
It left a gap on Monday, which we still can’t be sure about what type gap is, so let’s keep this point in mind as well.
Yesterday’s candlestick was very bullish, and the volume was pretty high. I wonder if this is an Exhaustion Bar after an Exhaustion Gap. Either way, pullbacks are acceptable and even desirable.
If you liked this analysis, please, support it! And follow me to keep in touch with my studies and updates! Let’s watch AMZN closely from now on!
My best regards.
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