Critical Support Shelf Play in Amazon AMZN Right Here
Amazon (AMZN) shares tumbled from the (almost) $1,100 peak in July and have remained weak.
Let’s pinpoint a critical price point that will be key to trading the next swing for this popular stock:
We’re dangerously close to forming a Head and Shoulders price pattern with a neckline at the $940 level.
Buyers continue to hold support – and create rallies – off this critical price target.
With reversal candles developing here today, we’ll hold our dominant thesis to expect another bounce.
However, if bears gain control and crack price beneath $940, expect a quick liquidation event toward the rising 200 day SMA (red) near $910 per share.
If you’re playing options, swing trading, or day trading this big name, frame your next decision in terms of the departure away from $940.
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Corey Rosenbloom, CMT
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