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!

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 Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

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).

1 Comment

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

  1. Mishtree Says:

    It will be interesting to see where Amazon heads next but we got to be extremely careful and wise with how we deal up with things. I always follow this incredible blog which helps me working smoothly while I also get advantage with broker like OctaFX which itself is pretty special been regulated plus a true ECN while they also have won award for the same and also provide us with 24/5 support service, it’s all perfect package to be working with.