ΟΠΑΠ-ΤΙΤΚ-ΕΥΡΩΒ
October 13, 2016
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October 13, 2016

I do not like parabolic rises and I do not like AMZN. I believe we have several signs for a correction that could very easily push price below $700. I believe we have a train that is about to get off the tracks as the lyrics of Rock N Roll Trail by AC/DC say. Yesterday I opened a short position at $834 and only a break above $850 could change my short-term plans but not my longer-term view.

Monthly Chart

amznmonthly

Clearly still inside the long-term bullish channel. But at the upper boundary of the channel at important resistance. A rejection here could put the red upward sloping channel in danger.

Weekly Chart

amznweekly

Oscillators are warning bulls at overbought levels as price touches the upper channel boundary.  A break below $800 will confirm the end of the upward move from $470-480 lows. This will imply a corrective pull back could at least reach  the 38% Fibonacci retracement at $705.

Daily

amzndaily

First short-term target is at $825 and then towards $750-780. Oscillators are even uglier in the daily chart.

4 Hour Chart

amzn4hour

In the 4 hour chart we see a pattern of lower lows and lower highs in a newly created bearish channel. Short-term trend is turning bearish and I believe $800 could be tested this week. Cloud support is critical at $770 by the daily cloud.

I believe that markets are entering a correction phase before the US elections and AMZN will be affected by the risk off environment I expect the markets to be in.

Thank you for taking the time to catch up on my thinking.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.