Can AMZN price go down to $570?

Hi traders / investors,

We are talking about the stocks market. There are patterns, noise and randomness of course. US stocks market has a bullish bias. However, past performance is not necessarily indicative of future results. We are talking about a game of probabilities and even 1% probability should be considered seriously. So let's have a look at AMZN chart here.

As we all know, AMZN price declined all the way down to $1307 on December 2018. $1307 is now a strong support. Meanwhile, it's a crucial zone for investors. If we see a drop below $1307, we can most likely see a decline all the way down to $507. I know it sounds like a conspiracy theory. But do you think there's 0% probability? This is not math but statistics. So there's no certainty but probability.

Technical Analysis

When we are talking about the technical analysis, what we are really doing is to analyse the past performance of the underlying. This gives us a clue what can happen in the future. There are tons of other factors like news, time, performance, momentum, fear, greed and etc. However, let's just have a look at the chart. As a technical trader, i only look at the charts. To me, news are in the charts. On 4th September 2018, Amazon reached ATH (all time high). 11th July 2019 is the confirmation of a range. Now AMZN is in the range. If you look closely, you can see an ascending and a descending trend lines. We call it triangle. They meet somewhere in the future. In this case, they meet in 2030. Wow, it is a wide range. What we all know is, AMZN price more than likely to test both ascending and descending trend lines. But we can not say when (can we?). As we know the range, why don't we just trade it? If the price goes above the descending trend line, we can short sell the stock (or buy some put options) and if it goes below the ascending trend line, we can long buy (or buy some call options). But in this particular case, if $1307 is broken, i would wait a little bit more. I will think that something is going wrong here.

Conclusion

I'm not saying that we are going down there. However, in case $1307 is broken, more than likely, AMZN to reach $570 level.

Disclaimer: I'm not a professional trader or financial advisor. This is not financial advice.

Trade safe,
Atilla
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