If you’ve followed Amazon.com (AMZN) for any significant amount of time, you’ll know that over the past year or so it has seen some of the most dramatic ups and downs in the stock’s history.
Here’s the nitty-gritty on the stock:
- Text book inverse head and shoulders pattern in place but not yet confirmed (Pending Bullish)
- Found support at the convergence of the 10, 20, and 50-day moving average (Bullish).
- 200-day Moving average looming overhead at around $201 (Bearish).
- Accumulation after breaking the downward trend off of the October highs (Bullish)
- Unfilled gap in the chart from 10/26 (Bullish)
- Has yet to put in a higher-high on the chart (Bearish)
So here are the trade parameters I’d use.
