Technician’s Edge: Rounded Arc and Support on Amazon AMZN

Feb 4, 2010: 4:07 PM CST

Today’s column at GreenFaucet’s Technician’s Edge addresses the interested “Rounded Arc and Critical Support Level in Amazon.

In the column, I highlight the “Rounded Reversal” (arc) chart formation (complete with negative momentum divergence) that formed at the $145 level which formed a ‘mirror image’ decline to complete a (near) perfect arc.

Initial support rests at the $115.00 level, but the key line in the sand exists at the October gap low of $110.00.

Any break under $110.00 would likely slice through the ‘open air’ to fill the gap, pulling price lower to the $95.00 level.

If you’re not a trader of Amazon, then this is a very interesting chart pattern to observe, but if trading, keep a close eye on those key levels.  Full commentary is available at the Technician’s Edge column.

Corey Rosenbloom, CMT
Afraid to Trade.com

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

6 Comments

6 Responses to “Technician’s Edge: Rounded Arc and Support on Amazon AMZN”

  1. Greenhorn Says:

    Hey guys. I love all these great blogs. Hank Paulson on PBS/Charlie Rose hyping his book. I have never heard anyone hm and haw so much. He barely can say 3 words together. Somebody better in the know (thats anyone but me) needs to decipher this and try to figure out what he's trying to hide.

    I know so so little, but the last few years I've multiplied my knowledge which might fill 2-3 thimbles now. Thanks again to all you guys, GA

  2. Greenhorn Says:

    Hey guys. I love all these great blogs. Hank Paulson on PBS/Charlie Rose hyping his book. I have never heard anyone hm and haw so much. He barely can say 3 words together. Somebody better in the know (thats anyone but me) needs to decipher this and try to figure out what he's trying to hide.

    I know so so little, but the last few years I've multiplied my knowledge which might fill 2-3 thimbles now. Thanks again to all you guys, GA

  3. Novice_trader Says:

    I really appreciate the TA on AMZN. Depending on tomorrow's job numbers and the reaction I might buy some puts. Thanks

  4. Sam Says:

    Good blog.

    I like to look at market internals(buying vs. selling pressure) on an hourly time frame. The indicator I use is this one:

    http://bit.ly/axhMl7

  5. thetradedetective Says:

    looks like you've got a rounded reversal on AMD too, with the same support above a gap at around $6.12
    here's a link to the chart
    AMD Rounded Reversal

  6. thetradedetective Says:

    looks like you've got a rounded reversal on AMD too, with the same support above a gap at around $6.12
    here's a link to the chart
    AMD Rounded Reversal