Amazon AMZN Breakout and Bullish Dominance Continue in May

May 12, 2016: 10:55 AM CST (AMZN) shares continue their strong bullish dominance and a new breakout opportunity continues to deliver profit to active bullish traders.

Let’s note the larger trend and focus on the current breakout to new highs in an ongoing powerful uptrend:

“Stocks which are strong tend to get stronger” and Amazon (AMZN) continues to strengthen powerfully.

We see a strong, persistent uptrend (except for 2014) on the Weekly Chart.

2015 was a particularly bullish year for shares as price doubled from the $300.00 level to $600.00 and beyond.

An early pullback to $500.00 in 2016 set the stage for the power-rally that propelled price from $500.00 to $700.00 where we have our current breakout.

The larger trend is up and that creates additional opportunities on the lower timeframe:

Recently, the $550.00 per share level – along with $500.00 – has been the key short-term pivot price.

Price broke impulsively higher – a breakout opportunity – in October and surged toward the $700.00 pivot.

A negative divergence sent price back toward – and under – this level as we began 2016.

However, buyers rallied the stock toward the prior high and now above it, generating what has been a strong breakout so far.

Volume and momentum spiked on the recent breakout and we can draw a parallel to the October 2015 breakout.

First, we don’t short-sell impulsive breakouts, no matter how tempting it may be.

Second, we can either swing-trade aggressively long or we can trade on the intraday (lower) timeframes when buy signals occur.

Whatever vehicle you use – options or stocks – focus on the departure from $700.00 into “open air” and continue to put the current bullish in the context of the last few bullish years.

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT

Afraid to

Follow Corey on Twitter:

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


2 Responses to “Amazon AMZN Breakout and Bullish Dominance Continue in May”

  1. khalid semmou Says:

    Best Site For Signals Forex

  2. Donald Says:

    It looks fairly decent opportunity to trade in, I always love to follow this blog to get analysis consistently especially with such high level of accuracy. It’s similar to my broker OctaFX where too I get daily market news and analysis updates, it’s given for free yet is highly effective. I have been able to gain over 80% results in past 5-6 months, so I am extremely pleased with things and that allows me to be comfortable which leads to profits.