AMZN Amazon Monthly Chart; Overbot; Rising Wedge; Negative Divergence Developing

Amazon leads the broad market higher with investors buying with both hands. Aunt Nellie is caught up in the joy and places her entire life savings in Amazon stock. Amazon is topping out in the monthly time frame but not yet. Note the long and strong MACD line and the money flow has a bit of short-term momentum.

The red liens show negative divergence with the RSI, histogram, stochastics and money flow. The RSI, stoch's and money flow are overbot agreeable to a pull back. The MACD is in the stratosphere and will need to negatively diverge to identify the multi-month and multi-year top for AMZN.

A jog move would be expected going forward (down-up-down). AMZN will likely retreat in the monthly time frame due to the overbot conditions and neggie d with the RSI and stochastics, however, price will then likely come up once more to satisfy the long and strong MACD line. If you enjoyed big gains in Amazon, you can begin scaling out say in thirds. Sell one-third now, one-third in a month and one-third the month after that.

Price will likely sink in June-July, then recover to print a matching all-time high say in the July-August time frame (the jog move) and then roll over August-September. The multi-month, and likely multi-year, top will be in for AMZN say in the July-September time frame. Amazon shareholders will not be thankful when they sit down at the Thanksgiving table. 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.