AMZN Update – October 18, 2017 …

I last wrote about AMZN back on September 12, 2017, (click here) … the gist of that update was that I thought the longer-dated charts were possibly entering into at best consolidation pattern that would likely lead to no better than market performance, but that the smaller time frames were actually showing a nice bull-flag that was about to break.

I did catch a nice intra-day trade that next day, but since that breakout failed after one day, I have been monitoring whether or not we were beginning that bigger distribution pattern.  I am updating my view of AMZN today because if my view is correct and we are likely forming a large distribution pattern going forward here with AMZN, then it is possible that we have just completed an expanding flat corrective pattern off of the first push lower.  Here are the charts … Continue reading

DIS Update – October 12, 2017 …

DIS broke a bear-flag on the daily chart today, to continue what looks like a bearish trend on the weekly chart.

DIS – Weekly Chart

Despite traders that come on the TV and talk about buying DIS below $100 as a good entry point for swing trades, I just don’t see the same risk/reward as they do.  To me, the broadening pattern to the upside on the weekly chart has been decisively broken and until that chart starts looking better, there is no need to look to swing long DIS.

The relative-strength vs the SPY ETF indicator (right chart) is breaking to new lows, and that to me confirms to stay away from DIS in terms of long swing trades.

DIS – Daily Chart

Bounces happen during bigger trend moves lower … any oversold bounces in blue-chip stocks, especially in names as iconic as DIS is, can typically last several days.  Eventually, however, the bigger more dominant trend takes over and price will break out of these possible bear-flags price patterns.

Cheers … Leaf_West