AMZN
AMZN has formed some interesting chart patterns recently that would indicate another move higher after the recent pullback. In addition fundamentals of the company look solid and the current retail environment seems to favor online over brick and mortar stores. According to IBKR there the analyst consensus price is set at $3'754 (+15.75%) with a 47/50 Buy rating.
Technical Indicators:
- USD 3.245 has shown to be as resistance level throughout summer (July-Sept) before subsequent breakout and formation of the cup and handle
- Cup and Handle pattern with positively broken handle on Oct-27; handle breakout point (3.205) also equal to 50% Fibonacci retracement level
- Two consecutive Hammer formation prior to breaking the handle to the upside
- 50 EMA is acting (and confirmed ) as dynamic support for the breakout
- Reversing MACD, approaching positive crossover (not yet confirmed)
- Support has formed at $3'206 (50% Fibonacci Retracement Level)
- Resistance likely around $3'285 and $3'390 before previous highs can be targeted
Trade Idea:
Entry Price $3'206.00
Take Profit $3'570.00, just above Sept-02 high
Stop Loss $3'085.00, just below low of handle
R/R ratio 3:1
Risk Management
In case of a rally, I would gradually increase my stop loss levels post each passed resistance level until the Sept-02 high ($3'531) would become my new stop loss and my new take profit would be the analyst consensus around $3'754
Before engaging in a trade I would want to see the $3'206 confirmed
Any feedback, comments, suggestions are highly appreciated.
***All above is a purely personal view of myself and does not represent investment advice in any form unless otherwise stated.***
Comment:
Trade engaged, position opened at $3.206
Trade closed: stop reached:
Stop reached during Friday sell off.
Price now back within the recently formed handle channel, approaching the psychological important $3k level before the $2871 low from September.
I am still positive on the fundamentals of the stock and will likely seek exposure again post US elections to avoid unnecessary volatility.
Price now back within the recently formed handle channel, approaching the psychological important $3k level before the $2871 low from September.
I am still positive on the fundamentals of the stock and will likely seek exposure again post US elections to avoid unnecessary volatility.
Comment:
3x gap higher amid US election trading. Positive on long term. Seeking to enter the stock again after current volatility eases off and indicators become more reliable.
Comfortable to own the stock anywhere around the 3k level
Comfortable to own the stock anywhere around the 3k level