Price Collapses for Popular Stock Amazon.com
Popular stock Amazon.com (NASDAQ:AMZN) rallied to new highs at the beginning of 2016 but price collapsed as the weeks progressed.
We now have a retracement to a critical resistance target and our planning comes from what happens here.
Let’s chart the level and plan the next price swing to trade:
It took just over one month to collapse price from $680 to the $480 level last seen in August 2015.
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Price retraced “up away from” the $470 level “toward” the $540 level which was our short-term target.
Look closely to note the overlap of the underside of the 200 day SMA (red) and the falling 20 day EMA (green).
The trades come from what happens next:
Most likely is a bearish reaction/retracement “down away from” the $540 level…
or perhaps a “bullish short-squeeze breakout” triggers above $540 and $545.
Whatever tools and tactics you’re using to trade Amazon (AMZN), focus your immediate attention on $540 and manage open trades – or put on new trades – based on the departure “away from” the $540 key pivot price level.