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Related Article
2.1.13 “7 Proposed Indictments on $AMZN”
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2.20.13 Wednesday
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9:00AM CT- I Entered Bearish @ $273.83
After Close
Reason 1 : As I have shown my take on $AMZN, I am bearish on it as you can see it on this analysis.
Reason 2: It looks like we are forming a awkward looking Head and Shoulders pattern on this daily chart.
Reason 3: Sharp bearish divergence on the weekly chart
Reason 4: Possible bearish flag on the weekly chart
Reason 5: Recent bullish move was not supported by volume
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2.23.13 Saturday
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Confluence Zone
Congestion zone to watch next week. We break below lower congestion zone, it’s toast. We break above upper congestion zone, headed to retest that all time high level at $284ish. I have reasons to believe that we might test $273-$270 level early next week.
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*Deleted some previous updates as it was irrelevant at this point
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3.4.13 Monday
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Still Holding My Bearish Positions
I am getting very close to stopping out here possibly tomorrow. Why didn’t I take profit while I had the chance? Because I didn’t get into this trade to make few bucks but I got in this trade to make at least $40-$50 swing trade to the downside. Volume is fair today but comparing with rest of the volume last week, it is low considering the size of it’s length of the candle today. $274 upper confluence zone has been solid resistance back in 2/20 so I am curious to see how it will react tomorrow. It is very much possible we could push through and retest that $284 level. I am still standing behind my analysis and I am still bearish unless it closes above $284 level this week with high volume.
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3.5.13 Tuesday
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Stopped Out @ $275.31
Well tried to face the bulls head-on once again this morning but failed this time. I am still bearish on this name and I would have to wait for next entry to short. It could go up to test that $285 level and make true double top but I am not sure at this point.
Looks like the weekly MACD has rolled over bearish.
@LittleRiver yes i saw that and I am still bearish on it
Holding 260 put as I see AMZN doing its flipping testing HNS neck now it looks like an inverted HNS n bullish as it breaches 270. I hate losing on this. Well I will take a loss n covert to call. I think this market is irrational n artificially inflated so reading chart is only a small part of it. Discipline patience n enough time dedication are very necessary.
@drerichu reading chart is everything but thats me. You got in too late and you are holding too long. I got in at $274 with $275 april puts so these actions don’t bother me as I have plenty of time to wait around as long as it don’t stop me out. when it comes back up to test that $275 level, I am going to short even more as I am bearish as in the big picture. good luck
@2kaykim
Then should I take a drawn down n let it drop down to get out. I got in at when it was at 267. How much conviction that you have it will drop below 260 in the next 2 weeks. If u were stuck in my situation( I know u will never be), what would u do? Thx bro.
@drerichu well if you are still in the trade, i wouldn’t get out now. put your stop above $275ish and hope that will find some resistance and roll over next few days.
@2kaykim
How do you set stop for put option? Or call option? U means contingent order to sell put option if Amzn hits $276 at market? or at limit? How do I set the limit price it hits 276?
@drerichu contingency so set it like “if AMZN trade higher than $276 in stock price” then “sell my put options at MARKET”