Amazon (AMZN) Bulls Stung By Nasty Bearish Reversal

To be clear, Amazon (NASDAQ:AMZN) has been a top stock for several years.  It’s in a bull market uptrend and that remains in tact.

BUT, caution is advised over the near to intermediate term after a nasty bearish price reversal last month (and into last week).

This reversal was one of the largest price reversals for Amazon stock over the past 20 years.

If we take a closer look at the chart, we can highlight a few things going on with Amazon’s stock price (now and historically).  Using the lows in 2001 and highs in 2013 (marked by the numbers 1 below), we can apply a 261% Fibonacci Extension (see red dotted line and number 2).  This is exactly where the bearish reversal candle (and long wick) came into play.

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As well, that reversal took Amazon’s stock price down to a test of its sharp rising uptrend line (point 3).  Bulls want to see prices hold at this trend line… especially after such a big reversal.


Amazon “Monthly” Stock Chart – Bearish Reversal Pattern To Watch


Twitter:  @KimbleCharting

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.