4 Reasons Why Amazon Will Not Fall Below 230
Dragonfly Capital | Oct 11, 2012 03:43AM ET
Amazon.com (AMZN) has put in a double top in the 263 area and has been heading lower. The Bollinger bands are opening to allow the flow down and it is now below the 50 day Simple Moving Average (SMA). But I am here to tell you that it will not go below 230. Period, end of story! Just look at the chart below. The Volume at Price bars on the left hand side show a marked increase in volume to work through there, like a roadblock. There is also the 100 day SMA sitting at 234.15 and slightly rising.
Amazon (AMZN)
Next note the previous high on April 30 and finally the consolidation from July 27th through August 15th over support at 232.75. So it will definitely not go below 230. Unless all of those fail to hold it up. Then there is a gap fill to 221.45 and 196.36 with support at 207 along the way. But like I said it will not fall below 230, maybe.
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.