Tuesday, March 8, 2011

AMZN Amazon Weekly Chart M Top

AMZN Amazon weekly chart showing textbook overbot conditions, rising wedge and negative divergence that created the January spank down. Then in early February price came up for a matching high again but was met with further negative divergence as shown by the red lines for the indicators. Price collapsed thru the 20 MA and RSI went under the 50% level which are a couple more nails in the coffin. The bearish vibe is increased by the M Top in place now. This is not the look of a bullish chart, looks like the best days are behind it.

Watch the 20 MA and 50 MA cross, this cross signaled the all clear for the long bull rally starting spring 2009. Likewise, a cross of the 20 MA down thru the 50 MA in the coming weeks will signal that the party is officially over. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.

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