I caught a nice little trade intra-day in AMZN during the last hour of the day today, and when I see the large cap momo names acting well into the close I will typically expect to see strength the following trading day … so I suspect the easier trades in AMZN, GOOGL, NFLX, AAPL and FB will be to the upside tomorrow (AAPL maybe not because of the iPhone X launch).
Anyways, I thought it would be worthwhile to update my read of the AMZN charts …
AMZN – Monthly Chart
AMZN has had a tremendous run, but it I would suspect that we are probably seeing the start to a 3-9 or 12-month consolidation/pullback, starting with that large range, shooting star monthly candle back in July 2017.
The Relative-Strength vs the SPY indicator is still showing AMZN to be a bullish stock, but it looks like we are indeed entering a period of at best, market performance.
AMZN – Weekly Chart
The weekly chart still has its ATR in a position of support at $922.51, but I think that will eventually be taken out during this monthly consolidation pattern. Notice how the relative strength vs the SPY ETF indicator is actually starting to fail and possibly breaking the prior pivot high support level.
AMZN – Daily Chart
Despite the bigger monthly chart outlook, AMZN can give active traders great trade set-ups for intra-day and up to say 3 day trades. I think we may be entering one of those smallish expansion phases here quite soon.
The daily chart looks like a bullish flag pattern to me …
AMZN – 65 Minute Chart
Bottom Line – Big cap tech stocks looked strong today, and we might see some follow through during the rest of the week. AMZN looks like it could be one of those market darlings that is ready to go a little bit higher over the next couple of days.
Cheers … Leaf_West