Let's talk about the obvious head & shoulder pattern on the Amazon daily chart and why it isn't a true textbook head and shoulder pattern.
(please don't come for me, this is just my opinion lol)
1. a Head & Shoulder is made during an uptrend.
This one on $amzn was created on a downtrend.
2. the VOLUME on the left shoulder should show highest green volume bar on.
This one on $amzn does not. The head has the highest green volume bar.
3. Amazon is showing significant strength here at support and could potentially break-out of the ascending trend it is was previously rejecting.
Amazon is a leading e-commerce retailor but lets not forget about its web services and infrastructure as well.
I'd also like to point out that if you ZOOM OUT of the daily, we just completed a Wyckoff distribution top pattern and has already achieved the full measured move down.
The market cannot be trusted these days and it is still very much possible for Amazon to drop lower. I have included 2 support and resistance zones for upside and downside trading (also a GAP marked above in RED).
This is not financial advise, just some observations.
Happy Trading =)
(please don't come for me, this is just my opinion lol)
1. a Head & Shoulder is made during an uptrend.
This one on $amzn was created on a downtrend.
2. the VOLUME on the left shoulder should show highest green volume bar on.
This one on $amzn does not. The head has the highest green volume bar.
3. Amazon is showing significant strength here at support and could potentially break-out of the ascending trend it is was previously rejecting.
Amazon is a leading e-commerce retailor but lets not forget about its web services and infrastructure as well.
I'd also like to point out that if you ZOOM OUT of the daily, we just completed a Wyckoff distribution top pattern and has already achieved the full measured move down.
The market cannot be trusted these days and it is still very much possible for Amazon to drop lower. I have included 2 support and resistance zones for upside and downside trading (also a GAP marked above in RED).
This is not financial advise, just some observations.
Happy Trading =)