[Chart of the Day] Amazon, possible resistance and short setup
Amazon just got a stock split. It is now at a level that retail traders can afford.
There is a huge resistance at 130 levels. Yesterday's pin bar candle shows rejection in price. We may see a further decline in price if the resistance level holds.
If the price can breach beyond 132, it may rise further to close the gap at 138. If you decide to short at the current price, 132 is the key resistance level that you should look out for. You should look to cut your short if the price goes beyond 132.
Traders may choose to wait for the price to break down to below 119 before opting for the short trade. This is because 120 - 125 does seem like a consolidation zone. Shorting at the current price may run the risk of getting stuck in the consolidation zone.
Nimbus's Verdict: Possible Short Setup. Stay away from placing long positions.
There is a huge resistance at 130 levels. Yesterday's pin bar candle shows rejection in price. We may see a further decline in price if the resistance level holds.
If the price can breach beyond 132, it may rise further to close the gap at 138. If you decide to short at the current price, 132 is the key resistance level that you should look out for. You should look to cut your short if the price goes beyond 132.
Traders may choose to wait for the price to break down to below 119 before opting for the short trade. This is because 120 - 125 does seem like a consolidation zone. Shorting at the current price may run the risk of getting stuck in the consolidation zone.
Nimbus's Verdict: Possible Short Setup. Stay away from placing long positions.