Pullback Planning for Amazon AMZN June 14

Jun 14, 2016: 10:17 AM CST

Have you updated your “Pullback Trading Plan” for Amazon (AMZN) if you’re currently trading it?

Buyers wish for stable pullbacks in strong, uptrending stocks and we have a moment like that in AMZN.

Here’s the quick-glance at the chart and our objective plan at our critical support level:

For full information on how we identify trends, classify pullbacks, then enter/manage trades, check out our “Perfect Pullback” strategy.

Until the negative divergences undercut the rally, Amazon was a strong uptrending stock with multiple pullbacks (retracements) that allowed traders to buy into support ahead of expected bounces.

We’re at a similar point now but the divergences give us pause that wasn’t present on earlier pullbacks.

Mainly we have an uptrending stock retracing into the rising 20 day EMA at $710 per share.

There’s two ways price can go:  “UP away from” the pivot to continue the uptrend or “DOWN toward” the rising 50 day EMA at $680 per share.

We don’t make predictions, but instead trade the price action as it moves toward or away from key pivots.

Right now, that pivot is the 20 day EMA at $710.

Whatever other indicators/methods you’re using, be sure to note the short-term importance of this level and to frame your trade on the swing away from this key pivot.

Study and compare our prior updates on Amazon:

Zooming-in on Bullish Trades in Amazon

Amazon Breakout and Bullish Dominance Continue for AMZN” (correct analysis)

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 “Pullback Planning for Amazon AMZN June 14”

  1. Harshim Says:

    In my view the current situation is very messy and that’s why we got to be very careful with how we go about everything since only then we will be able to work things out correctly. I am glad that I trade with OctaFX broker where I get ample support through low spreads, high leverages and many such features, so that really has made me trade wisely and I am able to achieve positive results with ease and comfort in any situation.