Amazon AMZN Triggers July Breakout Buy Signal

Jul 14, 2014: 12:14 PM CST

Amazon.com (AMZN) shares continued with follow-through from a breakout buy signal I highlighted last week.

Let’s update our chart and highlight the new levels to watch after the breakout triggered:

Start with last Friday’s AMZN  post for additional background and to set the stage for today’s Breakout Follow-through.

Today’s quick update shows the follow-through and the break above both th3 $340 level and now (today) the rising 200 day SMA into the $345 per share level.

This triggers a potential continuation move even higher through the “Open Air” pocket straight into the $360 first target – if buyers can break through the next resistance target into $360, then the “Open Air” pathway continues to the prior high near $380 per share.

Volume and momentum continue to suggest bullish strength (note the arrows).

A quick view of the 30-min intraday chart shows the structure and breakout that took us to current levels:

Note the sideways rectangle and the bullish breakout on high (confirming) momentum and volume on July 11th.

Price continued its impulsive breakout, in part thanks to buyers entering (or adding to existing positions) as short-sellers triggered stop-losses (buying-to-cover losing positions).

For now, monitor the $355 intraday pivot as buyers/sellers interact with this level and the higher $360 level should the breakout continue.

Amazon.com (AMZN) will continue to have bullish expectations (from the chart) as long as price can remain above the breakout and especially today’s opening low.

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Also, I’m excited to be teaching an educational webinar as part of the eTrading Expo series this Wednesday (July 16th) at 3:00pm EST entitled “Rounded Reversals: Five Steps to Spotting and Trading Gentle Reversals” which will help you increase your ability to plan market events (and trading strategies) like this. You may use the following link to register for the Rounded Reversal free live presentation.

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Corey Rosenbloom, CMT
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