Amazon — is this an opportunity. Sure — but not for the bulls.
Discussed in this article: Amazon.com Inc. ( $AMZN )
Today I want to look at Amazon ( NASDAQ:AMZN ) and here’s why; you can see a lot of these patterns in so many stocks where they gapped up, strong earnings, had already been in an uptrend, already a pretty nice uptrend. The stock gaps up, doesn’t really go too far, and then starts to roll over.
Now, Amazon ( NASDAQ:AMZN ) is starting to fill the gap, but you’re probably going to see support you could say at the gap. But the way the markets trading, and as far as this stock has gone, my bet is Amazon ( NASDAQ:AMZN ) could come down to the 320.00’s sometime over the next month or so.
So my suggestion would be if you want to short this stock it’s probably not too late; though you’re likely to get maybe a little bounce over the next couple days, it’ll give you a better entry. But it would be kind of a short, short, a quick short, because again, I’m just looking at $320.00, which if you move the decimal over that’s like shorting a stock that’s 34.35, and covering it down at 32.00. So it’s not a big short, but I think will actually work, and if nothing else this should keep you out of this stock.
We’re seeing the same type of thing with Google ( NASDAQ:GOOG ). It’s not quite at a point where Amazon ( NASDAQ:AMZN ) has been yet. I think part of the reason frankly is, because this thing has been in a basing pattern for half a year, whereas Amazon ( NASDAQ:AMZN ) has not. Amazon’s ( NASDAQ:AMZN ) been in a nice uptrend. So those are just a couple a bearish thoughts for you.