Here’s your trade on Amazon ($AMZN) – January 27, 2023
AMZN
Amazon ( NASDAQ: AMZN ). This is a stock that I haven’t traded in a while, quite a while, not because I don’t like it, it’s just because other stuff seems to have caught my eye, but this one does now.
Part of the reason is that they report earnings next week, on the 2nd, which is on Thursday, after the close, so this has 4 trading days to go. What I am talking about here is a short-term trade, not a long-term, not an earnings trade. But I see this stock here, I had previously looked at this level here (102.24) as a good resistance level, well, it’s really been 100.00.
This would be my suggestion to you, as long as the stock is above $100.00 I think you are good to go. I would look to buy this stock on Monday and keep a stop just a little bit below $100.00. I would want to keep it that tight, and this is why, for this trade. If I am committed to selling this stock by the end of the day on Thursday, in other words, 4 trading days, then I don’t want to tolerate much of a pullback because that takes time
The pullback takes time and then the retracement, if it happens, takes time. So it is kind of one of those things where, if the stock goes against me, how long will it take me just to get my money back, let alone make a profit on the trade? That’s why I am saying, give this a time stop as well as a price stop.
So you are in this stock for a maximum of 4 days, I’m not going out on a limb here too much, but I would look for 110.00 on the upside, and just don’t let it go below, 99.00. Don’t let it go below $99.00 and you’ve got a really, really tight trade.
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