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

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