Amazon AMZN Fails at Overhead Wall of Resistance

Aug 17, 2017: 11:14 AM CST

I featured Amazon (AMZN) as a bearish swing trading candidate in last night’s member report and this morning we’re seeing initial follow-through in the bearish direction as shares failed at a wall of clear overhead resistance.

Let’s see what’s happened and what to watch now:

Amazon AMZN Daily Sell Swing

In our “Swing Trader’s Zone” of the Idealized Trades Report last night, I highlighted the overhead “Cradle” Resistance from the falling 20 and 50 day EMAs overlapping the $990 per share level.

In the event shares traded “Down Away From” this level – as appears to be the case – the target was the prior low near $950 per share for a quick swing trade (or series of profitable, bearish intraday trades on the pathway lower).

Amazon’s sell-swing today plays into the broader market weakness and is giving profits to those aggressive traders willing to step-up and sell into the resistance pivot.

Continue following this proposed bearish pathway toward the prior low – a critical support pivot – and be on guard for any surprise bullish reversals as price travels the bearish short-term path lower.

For alternate thesis planning, Amazon (AMZN) becomes a breakout bull candidate above $1,000’s critical price and EMA resistance.

Stay tuned!  And join us in the membership to take advantage of our expanding Swing Trading focus mixed with our intraday strategies and tactics.

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Corey Rosenbloom, CMT

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