Now That’s a Nice Pullback for Amazon AMZN

Oct 13, 2016: 2:19 PM CST

In simplest terms, we expected a pullback in Amazon (AMZN) shares and that’s exactly what we got.

See our prior trade planning update from October 10th on the Pullback Yet to Come in Amazon.

What that trade plan in mind, here’s the pullback exactly as forecast:

Again, view the prior planning for how we set the stage for the pullback “down away from” $845 “toward” the rising 20 day EMA target at $820.

Note our trade plan and the real-world action – and trade – that took place on the swing lower.

Now, we’re planning a possible bounce/rally up away from the $820 level as another possible buy spot in the ongoing uptrend.

The main lesson here is how we used the Daily Chart overextension – and reversal candles – and the lower (hourly) chart’s negative divergences to set the stage for a high probability, low risk “pullback” trade.

Want to learn more?  Check out our four-lesson “Perfect Pullback” series.  This would be a great example!

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Corey Rosenbloom, CMT

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1 Comment

One Response to “Now That’s a Nice Pullback for Amazon AMZN”

  1. Mishtree Says:

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