AMZN was a recent short last quarter which hit the first target (bottom of the channel) for a 13% gain before bouncing and triggering a stop for those who did not book full profits (T2 was the final target). Call this one more of a “gut” or instinctive entry than the usual trade entries that are based of pattern breakouts or bounces/pullbacks to resistance/support. Therefore, only consider this trade (as any trade idea posted here) if it aligns with your own personal trading style & market bias. As AMZN makes a new all time here today (bullish by just about any metric in the book), I am adding the stock as a short trade.
The first target will once again be the bottom of the yellow ascending channel while my preferred target at this time is T2 (and will very likely be extended if this trade begins to play out). On the weekly chart below, I have added some more aggressive targets for longer-term swing or trend traders as well. As listed on the daily chart below, a stop over 290.50 would provide a R/R (risk vs. reward ratio) of 5:1 for those targeting T2. For more active traders preferring T1, consider a tighter stop using at least a 3:1 R/R ratio. Daily & weekly charts below:
