Who knows what AMZN will do?

I have no clue on which direction Amazon will ultimately break out, but if the bottom line of my triangle is correct and it is still consolidating, then it can't be much longer before an upside or downside breakout is inevitable. In the case of a bearish breakout, I think the next major support it will hit is at $1860 and then possibly the $1760. An upside breakout, which I am more skeptical of, will probably face resistance at $2000 and $2040 it seems, and no telling where this magic carpet of a stock could fly from there. The bullishness of Amazon cannot last forever, and with its ridiculous parabolic appearance on the 5yr/1mo chart, I am less inclined to hold that it will continue to be so bullish for much longer even if it does survive this retracement. Only time will tell, so I think it is wise to prepare for either a short or long play depending on what comes of this week's price action.

Commentaire:

BTW, what are your ideas on the bottom line of the triangle? Is mine too low accounting for a runaway candle at the start and missing the breakout in Friday's movement or do you think Friday's downward curve is still in this trend? I have stared at this chart a lot with different candle lengths and still can't decide what exactly it has done.