Technical Analysis on Amazon
Wednesday, May 30th, 2007We picked Amazon (AMZN) for a Downside Trade (Short position)
TRADE QUALITY: 90%, which is rated Excellent
TARGET 1 Price: 61.38 Profit: 11.8% , for a typical pullback.
Cover Limit/Trailing Cover Limit: 71.22 Loss: 2.3%
Profit/Loss Ratio: 5.1 : 1 - Excellent
TARGET 1 POTENTIAL Excellent, there are 0 support areas on the way to Target 1.
Stocks may quickly fall to Targets when there are not many support areas blocking the way.
TARGET 2 Price: 58.13 Profit: 16.5% , Profit/Loss Ratio: 7.2 : 1 - Excellent for an extreme pullback.
BREAKDOWN WATCH for possible breakdown below 67.72, no support in area just below.
Type: Continuation breakdown from single support.
Target: 61.67, 11.4% Cover: 71.22, Loss: 2.3%, Profit/Loss ratio: 5 : 1 - Excellent
SUPPORT BELOW -11.8% at 61.38 (we expect AMZN to reach these level in 3 months)
-35.5% at 44.89 ± 0.9, type single, strength 2
-39.6% at 42.03 ± 0.84, type triple, strength 9
-43.9% at 39.06 ± 0.78, type triple+, strength 10
-46.5% at 37.26 ± 0.75, type triple, strength 9



