By: Marc Sperling
With Amazon (AMZN) basing nicely above that large breakaway gap from October, we now have a great opportunity for a good risk/reward setup on a swing long.
Take a look at a daily chart to see this action:
The stock broke through that aggressive downtrend line and is now building a solid base. Now let’s look a little closer at a 60 min chart:
I am buying Tier 1 long Amazon in this area in anticipation of a break above $120/121, using a $118 stop. On a move through $121 I will be adding an additional Tier, looking for a move into the $125 area.