Amazon (AMZN) in a box? (June 26, 2017)
AMZN GOOGL FB NFLX AMZN
I want to look at Amazon ( NASDAQ:AMZN ) today. This is an interesting thing; I mentioned in the Strategy Session tonight that all the FANG stocks are down. Facebook ( NASDAQ:FB ), Amazon ( NASDAQ:AMZN ), Netflix ( NASDAQ:NFLX ) it tested 160.00, but generally speaking it is all weak.
As I look at Amazon ( NASDAQ:AMZN ) here is what I want to tell you: This is a bearish engulfing pattern that goes back over the last two, maybe even three days. Where the high and the low of the stock intraday, here and there, if we just go stretch this thing back, this engulfs a lot of trading, so everybody is a loser here. This stock can trade like this for a while. They don’t report earnings for another month. The way the market is going what my suggestion to you is, just be ready for some sideways consolidation.
I like Amazon ( NASDAQ:AMZN ). I think ultimately it does move higher. But right now you stand the risk of getting chopped up on this stock. This is, frankly, a better stock for option traders, or if you have got a big portfolio you can take these swings. For options this is a great stock for selling spreads on the outside of the box here. But for the time being just wait for this stock to come down and give you a good entry point. If it does happen to fall down, to say even 980.00, start looking at it to bounce off of the 50-day moving average here.
Until it does that, or breaks out of this green box, which I have drawn for my own trading purposes, once it breaks out of there, then it is a buy as well. But in here, this is no mans land. Wait for the pullback before you buy Amazon ( NASDAQ:AMZN ).
Free Chart