Thursday, August 11, 2016

AMZN Amazon Weekly Chart Overbot Rising Wedges Negative Divergence

Amazon slithers higher the stock appears unstoppable. Price is forming rising wedges and RSI and stochastics are overbot. The red lines show neggie d sans the near-term MACD line. So a spankdown is needed. Price may have one tiny bit of juice remaining to come back to a higher high say after a one or two-week selloff but this would simply serve as the top instead of now. The direction should be lower with several weeks of downside ahead for the huge retailer.

Price is extended above the moving averages desperately needing a mean reversion. Keystone does not hold a position in AMZN but if tempted, it would be on the short side for the near term. The AMZN monthly chart is negatively diverged across its indicators except for the MACD line. Thus, AMZN should roll over from a peak at anytime in the days ahead. Price will likely travel lower into the end of August and early September. At that time, price will likely recover and come back up for another higher high, say, in October, where the MACD line on the monthly chart should go neggie d and that woudl identify a significant top.

Keystone has posted the Amazon chart this year monitoring the topping process and it is getting closer. So a top in the days ahead, then lower for a few weeks, then back up for a likely multi-year top to print in October-November. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added on Saturday, 8/13/16: AMZN ends the week at a record closing high at 772.56 and Thursday was a record intraday high near 774. Traders are throwing money at Jeff Bezos with reckless abandon. Aunt Edna took her entire life savings and invested it into AMZN since the nice fellow on television said it was a sure bet.

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