Its cyber Monday and the stock is only up $2...what gives?
Actually, I guess those with good enough timing to get in
near the 200day moving average near $220 cant complain with the stock trading
near $242. But AMZN is in an intermediate term bear market...so longs need to
be wary here.
Technically, there was a short term buy signal on November
19/20th (along with many other stocks) that may have more legs. But, as the
saying goes "Buyer Beware". There are 2 warning signs looming after
the latest 10% bounce...first, the 50day moving average sits just above at
$243...second, the 61% Fibonacci retracement level of $245 (measured from the Sep
highs to the Nov lows) is a formidable foe for any bear market bounce.
If looking for short exposure put this one on your Christmas
list. First level of support on the downside near $235 followed by the gap near
$227...while another test of the 200day ma will be very interesting. Stops
according to your risk tolerance but a higher closing high around $247.50 will
likely be a spot for many.
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