Short-term bearish on $AMZN for (3) Primary Reasons:
1) The current price-action puts the candlesticks near the top of a downturn within an established, three-month long parallel downward channel. As the price-action continues to follow this pattern, we should expect a retest or near retest of May 12th and 24th lows ($102.41 & $101.26, respectively).
2) The volume shelves from $116 down to $104 are thin, making it much more likely the price action blows through these and down to the $101.25-$102.50 range. Below this range is the much larger volume shelf from $96-$100. This should be much more protected.
3) Macroeconomic conditions at this moment appear to be "risk-off" and SPY is continuing within its downward trend and looking to retest lows we saw in May between $380 and $385. We have roughly a ~5.25% drop from 401.44 (Thu, Jun 9th close) to the 5/20/22 low of $380.54. In the past few months, a 5.25% drop can happen in (2) trading days, and frequently within (3) trading days, so this move could complete within the next trading week of 06/13/22 - 06/17/22.
Personally, I'm a buyer in the $101.50 - $102.50 range. But if you're ultra-conservative, I would plan to buy more @ $96 a share, and even more at $92 a share (this is where the largest volume shelf is going back to 2017, and thus is heavily protected on the downside) and just dollar cost average over the next six months.
1) The current price-action puts the candlesticks near the top of a downturn within an established, three-month long parallel downward channel. As the price-action continues to follow this pattern, we should expect a retest or near retest of May 12th and 24th lows ($102.41 & $101.26, respectively).
2) The volume shelves from $116 down to $104 are thin, making it much more likely the price action blows through these and down to the $101.25-$102.50 range. Below this range is the much larger volume shelf from $96-$100. This should be much more protected.
3) Macroeconomic conditions at this moment appear to be "risk-off" and SPY is continuing within its downward trend and looking to retest lows we saw in May between $380 and $385. We have roughly a ~5.25% drop from 401.44 (Thu, Jun 9th close) to the 5/20/22 low of $380.54. In the past few months, a 5.25% drop can happen in (2) trading days, and frequently within (3) trading days, so this move could complete within the next trading week of 06/13/22 - 06/17/22.
Personally, I'm a buyer in the $101.50 - $102.50 range. But if you're ultra-conservative, I would plan to buy more @ $96 a share, and even more at $92 a share (this is where the largest volume shelf is going back to 2017, and thus is heavily protected on the downside) and just dollar cost average over the next six months.