AMZN is paying the price during this market correction for being so widely held and for having run so hard for so long. Where is support likely to re-appear? No one, knows and I think that will depend almost entirely on when the tech market gets a bid finally.
Here are the levels I am looking at …
AMZN – Weekly Chart
The weekly broadening price formation has seen price pullback to the upper support/resistance line. Will price find meaningful support here at around $1375?? Maybe …
AMZN – Daily Chart
On the daily chart, I can see what looks like a nice band of prior volume in the $1125 – $1200 zone … with that zone in mind, I decided to sell some OTM put options that expire before the next earnings date (April 26th). I sold some of the $1150 puts that are going to expire on April 20th.
AMZN – 195 Minute Chart
I continue to trade AMZN as my main focus intra-day, but I am not yet prepared to hold any long/short position overnight. Selling some OTM puts at that $1150 level is a much safer way of making a multi-day bet on what will happen to AMZN over the next couple of weeks.
Cheers … Leaf_West