There are currently two different trading systems indicating a short term sell right now, with only one scenario indicating a risky buy.
Sell #1: Ichimoku cloud on the 2D chart. The last three times this signaled a sell, the price went down 20%+. Currently, the price has only gone down about 8%. I think we're going to fall to this fib line at 1620, which correlates exactly with 20%. If that's the case and we touch that support for the 5th time, we're going to break the support and drop to 1350, then 1042. Check out the last time Ichimoku signaled a sell, similar to https://this...https://www.tradingview.com/chart/HMMJ/lHfx9VQ5-HMMJ-to-drop-20-and-find-support-at-16/
Sell Signal #2: Death Cross (55ema crosses down 200 ema) on the daily. Even though the majority of the death crosses translated to stagnant consolidation, purchasing anything within range, at this time, is straight up gambling.
Risk / Reward: No matter what we choose to do here, our stop loss would be around 1548. From a short term R/R perspective, buying now at 1750 with a near target of the ATH is around 15% upside, and our downside remains at 12%, with our R/R < 1 (as you know, we want at least 3:1). Long term, if you truly are bullish about AMZN and the overall stock market right now (you shouldn't be, but for arguments sake), buying right now is actually acceptable considering the first upside target is 500 points above the ATH of 2050 (based on reaching 2050 that brings us into an ascending triangle, and a breakout of that is 500 points. That would be about a 3.5:1). If you were bullish, short term sell targets once we break out into ATH is 2419, then 2500, then 2700 based on trend-based fib extension targets.
However, we can get a much better deal on other tech stocks with a better beta.
Sell #1: Ichimoku cloud on the 2D chart. The last three times this signaled a sell, the price went down 20%+. Currently, the price has only gone down about 8%. I think we're going to fall to this fib line at 1620, which correlates exactly with 20%. If that's the case and we touch that support for the 5th time, we're going to break the support and drop to 1350, then 1042. Check out the last time Ichimoku signaled a sell, similar to https://this...https://www.tradingview.com/chart/HMMJ/lHfx9VQ5-HMMJ-to-drop-20-and-find-support-at-16/
Sell Signal #2: Death Cross (55ema crosses down 200 ema) on the daily. Even though the majority of the death crosses translated to stagnant consolidation, purchasing anything within range, at this time, is straight up gambling.
Risk / Reward: No matter what we choose to do here, our stop loss would be around 1548. From a short term R/R perspective, buying now at 1750 with a near target of the ATH is around 15% upside, and our downside remains at 12%, with our R/R < 1 (as you know, we want at least 3:1). Long term, if you truly are bullish about AMZN and the overall stock market right now (you shouldn't be, but for arguments sake), buying right now is actually acceptable considering the first upside target is 500 points above the ATH of 2050 (based on reaching 2050 that brings us into an ascending triangle, and a breakout of that is 500 points. That would be about a 3.5:1). If you were bullish, short term sell targets once we break out into ATH is 2419, then 2500, then 2700 based on trend-based fib extension targets.
However, we can get a much better deal on other tech stocks with a better beta.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.