#AMZN Forming a head & shoulders on the daily

16 Feb

Looks to me like amazon is trying to form this mini Head and shoulders top. Should the neckline at $167.50 break, the target pretty much takes you to the gap close level at $160.00 which is where we gapped from recent results. Recent reports that Jeff Bezos has sold up to 6bn of stock in amazon could sour sentiment slightly on the stock. We also had some bad retail sales for January in the US which could be seen as another negative for the stock.Also note how the MACD is about to roll over here. Aggressive traders could look to pre-empt this and short the right shoulder between 170-171 using a stop loss as a move above 172.50. More conservative traders to look for the break of the neckline at $167.50 in order to enter. Target to the gap at $160.00