AMZN: The Selloff

From January 20:

"AMZN rallied to the last of our upside targets, 191.50 (it got to 191.60), then sold off yesterday. Another of many examples why it's a good idea to "take at least 'some' profits when targets get MADE."

Update:

That final 191.50 target ended up being just ten cents below the recent high, prior to the selloff the past few days. AMZN has been trying to find some support here and put in a very narrow double bottom, or "W-bottom" early yesterday morning on the intraday chart and a possible Bullish Hammer on the daily chart.



After breaking out of the narrow Double Bottom early in the session (horizontal white bar), AMZN rallied to 177.00, then formed and broke out of a Symmetrical Triangle. After the breakout, it came back and successfully tested the breakout (first white arrow), then rallied again. Another triangle formed after that. I got in at 177.00, near the second white #4 and got another breakout to the upside and another successful retest of the breakout (the second white arrow). So far, so good.

AMZN rallied to 177.88 and looked like it would get to the short-term pattern targets at roughly 178.25 and 178.40, but we can see that the rallied fizzled going into the close.

177.13 was the low of the successful retest of the second triangle breakout. That "shouldn't have" gotten taken out, but it did, so I stopped my trade out right there.



Gain: $100. Paltry, but the patterns were there and the trade had a chance. Sometimes trades work and sometimes they don't. When they don't, stop it out and go back to the drawing board ;)