Amazon Update
Gary S. Morrow | Sep 03, 2020 02:51PM ET
Amazon (NASDAQ:AMZN) is pulling back after printing a new all-time high on Wednesday. The stock is off 5% and has very quickly reached a critical level. Since early April Amazon has been trending steadily higher while remaining inside a broad bull channel. Today, the stock is testing the lower band of the channel. Over the last four months this trend line has held five weekly lows. Also in this zone is the spike high ($3,344.30) left behind back on July 13. Amazon put in a huge key downside reversal that day which proceeded four days of heavy selling.
We regard the $3,300.00 area as a solid near-term support zone.
Note: We are long Amazon in some managed accounts.
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