Amazon has hurt itself … technically

Posted on by The INO.com Team

In today's video we look at the technical aspects of Amazon and see what's causing it not to go up at this point in time.

Analyzing the market in-depth, we can see that Amazon has hurt itself technically. According to the chart, we can anticipate that it is going to take some time to repair or even overcome the current level resistance.

This new short video outlines the areas we feel must be challenged to change the present trend. We also look at some downside target zones that may be possible for this stock.

As always our videos are free to watch and there are no registration requirements.

We would love to hear your thoughts on Amazon, so please post your comments below.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub

12 thoughts on “Amazon has hurt itself … technically”

  1. It's always good to follow these... after all, the markets move everyday. There's no such thing as a sideways market or stock... and AMZN proved to be more resilient than many thought. Will it break the 150 mark is the question.

  2. It may be that AMZN made an important high today. The price touched and back tested the long term support and resistance line drawn by Adam. In addition a Fib. overlay using the April 22 high and the July 23 low shows that price has now retraced back to the 50% level.

  3. Well, I got stopped out of my short ($123.75) this morning (good thing, too - it continued moving up). Looks like the Fibonacci didn't work this time? Or do you still expect a pullback if, for example it fails to break resistance at the next previous high? Or is Amazon simply going to wander such that things like Fibonacci retracements are no longer a good predictor of where it's going? In short, now that your initial analysis has proven incorrect, do you have any other analysis that you give weight to?

    Cheers,
    Roger

    1. Roger,

      Thanks for your feedback

      Like you I was surprised that Amazon came back and moved over those highs.

      Our trade triangles are pretty much neutral at the moment on this stock although the longer-term monthly trade triangle remains negative.

      All the best,
      Adam

  4. Adam,

    I agree that MACD is useful in spotting divergences. But Slow Stochastics is even better.

    Divergences are indeed powerful trading tools. However the pitfalls of relying on both MACD and Stochastics far outweigh the benefits. Both these indicators have led me to blowout trades a number of times.

    By getting rid of both, I have sacrificed the use of divergences but have gained focus on price action and trend, the ultimate keys to success.

    Thanks for explaining that there is no magic behind 127 period MA.

  5. Adam's videos are useful and I watch with interest.

    I wish to make a comment regarding indicators. As a Forex trader, I have used MACD and Stochastics forever. But I have discovered that they are often misleading. If one relies too much on them, as one often cannot help it, they will distract one to loose money. Now I have gotten rid of both and my trading results are actually better.

    I am using 5 Exponential moving averages (10, 20, 50, 100, 200), Parabolic SAR and Bollinger Bands.

    Adam uses 127 period moving average. My I ask what is the rationale behind 127 days?

    1. Gumnaan,

      Thank you for your feedback.

      I like the MACD based on its ability to spot divergences in all markets. I find it very helpful in that sense.

      Why do I use a 127 day moving average? It is probably through trial and error but I just happen to like that number based on my own trading.

      All the best,

      Adam

  7. On a fundamental note: AMZN missed their earnings by a substantial margin. When hedge and mutual funds look to jettison stocks .. this will be a prime candidate for them.

  9. Just wondering why my Amazon trade triangles show -70 and you are getting -100.
    I used all the exact data as you show in your video......

    1. Hi Gary,

      The reason for the difference in Chart Analysis scores is because conditions in this market changed enough to trigger two of the scores to reverse in direction. When Adam made this video earlier yesterday, all of the criteria that make up the CA score was negative. By the time you looked at the chart, the first and third criteria (+10 Last Hour Close Below & +20 5 hour Moving Average) had gone to the positive.

      Overall however, these changes did nothing to reverse the direction of this market and it is still in a long-term downtrend. At the time of my writing, this market is currently at a -80.

      -10 Last Hour Close Below 5 hour Moving Average
      -15 New 3 Day Low on Friday
      +20 Last Price Above 20 Day Moving Average
      -25 New 3 Week Low, Week Ending July 24th
      -30 New 3 Month Low in July
      -80 Total Score

      Please let us know if you have any other questions.

      The MarketClub Team
      800-538-7424

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