Amazon (AMZN) Bear Flag Hitting Resistance Point, Inc. (NASDAQ:AMZN) is moving into a key resistance point on the daily chart. This is called a neck tie and occurs when two moving averages converge. In this case, the 20 and the 50 moving averages. In addition, a classic bear flag formation has formed after Amazon reported earnings that missed Wall Streets expectations. The stock tumbled from a closing level of $184.45 to a low the next day of $166.90. Since then, the stock has rebounded higher, moving to a high today of $178.90. At this current level, the stock is kissing the neck tie. This can be seen on the chart below. In addition, note the classic in spirit of bull flag formation. The combination of both these bearish signals, gives a high probability short signal. Should Amazon close above the neck tie, the play is negative. A close over $181.00 would complete it and an exit would be in order. These are classic swing trade setups.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

Visit: InTheMoneyStocks

Be the first to comment

Leave a Reply

Your email address will not be published.