AMZN Amazon Weekly Chart; Sideways Symmetrical Triangle

The sideways symmetrical triangle shown on the AMZN monthly chart is worth exploring more on the weekly chart. Keystone often talks about how a fake-out move will typically occur for sideways triangles as they progress (orange circle). Price will then retreat back into the triangle and usually break in the opposite direction. In the above chart the expectation would be for a failure out of the triangle. Note that the upper blue trend line does not touch the prices in 2018 although it is very near. Thus, the thick blue line identifies the vertical side of the triangle and this is about, eye-balling it, let's call it 330 points.

Since price is in the apex of the triangle at 1750, an upside break-out will target 2080 the 2018 highs. A break-down would target 1420. The red lines show the neggie d spankdown that started the Q4 2018 crash. Price feels some buoyancy as the year began but languishes sideways ever since. The chart indicators are not tipping their hands as they stumble sideways. The ADX confirmed the strong trend higher in AMZN on the weekly basis but this petered out late last year. The ADX down to 13 signaling that there is no strong trend occurring in Amazon. It is a stock staggering sideways wondering what to do on the weekly basis.

The bottom band was violated so the middle band, and 20-week MA, at 1833, is on the table. For an upside break-out to be convincing, price will need to poke up through 1833. The brown circles show distribution taking place in Amazon stock the smart money handing off shares to the dumb money. Each brown circle shows Johnny Bagholder buying Amazon stock after the guy on television said it is a screaming buy. Pump and dump.

Watch the Aroon for a potential negative cross; this will tell you it is lights-out time. The move from the triangle is uber important and will occur over the next few weeks. Keystone does not hold a position in AMZN right now and would not hold the stock long. King Bezos watched the Amazon Prime jesters bring him bags of gold each day; now he will watch the bags of gold disappear year-after-year ahead. 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 Saturday Morning, 10/26/19:  AMZN eeks out a +0.2% gain during the week to 1761 continuing to sit on the 50-week MA support/resistance at 1755. It's bounce or die time. King Bezos laid an egg last Thursday evening when Amazon released earnings. Investors were yearning for more. AMZN crashed as much as -9% in late trading but recovered on Friday as dip-buyers are constantly tripping over each other to go long.