Amazon Weekly Trading Chart suggests the stock is in a parallel channel, and has just tested bottom of the channel.
In Daily Trading timeframe, we see that AMZN broke above a consolidation area on 5th September, and slightly pulled back on 10th to form a pin-bar. This pin-bar is our setup candle. We expect AMZN to continue upward and to hit top of the channel.
Long entry upon clearing the top of the pin-bar, provided AMZN stock does not form another low below the low of the 10th September pin-bar. The stop is hard below the bottom of the channel. Once AMAZON clears 1850 area, the stop can be moved higher, below the low of the pin-bar. As AMZN aims to test high of the parallel channel, we are looking at the consolidation (supply) area between 1970-2000.
Entry – 1827 Stop – 1757 Target 1 – 1900 Target 2 – 1970
We shall post updates once the trade triggers.
UPDATE 1 (11-SEP-2019)
AMZN Trade triggered on 11th September in the first trading hour when the price crossed 1827
UPDATE 2 (12-SEP-2019)
AMZN gapped up on rising volume and traded above 1845 for most of the day before closing at 1843. We bring stop higher to 1785 after the close to reduce risk in the trade.
UPDATE 3 (20-SEP-2019)
Trade closed, Stopped out (1789) on trailed stop.