Time to enter AMZN?
For the last 3 months we've been watching AMZN coiling. Day traders have found ways to buy puts and calls at major resistance and support lines. However, most of us have found it frustrating trying to find direction.
The pattern that I currently see forming is the bullish pennant. AMZN has constantly found it hard to move past the $3200 the past few weeks and if it has, dropping again intraday unable to hold that level. The bright side is that it has found strong support at $3065 which has held the channel that it seems to have formed.
Going forward two things could happen: (Bear in mind, vaccine and stimulus news are directing the winds and anything is possible)
1. AMZN could retest the $3200 wall. Watch for a breakout as it is very likely possible, most probably taking us back to the 52-week high.
2. Another drop to the $3065 level (and I do think this will happen). This time, we need to see if this holds. If it breaks, we could spiral down. If it holds, it is time to buy, for a breakout is imminent, confirming the bullish pennant pattern.
Trade responsibly!
The pattern that I currently see forming is the bullish pennant. AMZN has constantly found it hard to move past the $3200 the past few weeks and if it has, dropping again intraday unable to hold that level. The bright side is that it has found strong support at $3065 which has held the channel that it seems to have formed.
Going forward two things could happen: (Bear in mind, vaccine and stimulus news are directing the winds and anything is possible)
1. AMZN could retest the $3200 wall. Watch for a breakout as it is very likely possible, most probably taking us back to the 52-week high.
2. Another drop to the $3065 level (and I do think this will happen). This time, we need to see if this holds. If it breaks, we could spiral down. If it holds, it is time to buy, for a breakout is imminent, confirming the bullish pennant pattern.
Trade responsibly!
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