AMZN, BIDU And FCX

(Click on charts to enlarge. Click on them again for further enlargement. Use back arrow on your browser to return to the narrative).

AMZN had a strong day yesterday, coming off validated support at the bottom of the Falling Wedge (181.59) and the subsequent breakout of the Wedge. Intraday, it was up 20 points off the recent low and it has closed above the Kumo (Cloud).

That gain is an excellent illustration of why it's a good idea, in a market selloff, to buy bullish stocks that are testing support, not stocks that have broken support and have to rally into a lot of resistance. AMZN had a lot of support beneath it during its recent selloff from the January-April Bullish Inverse H&S Bottom.



The shorts who didn't cover when the Bear Flag target of 116.02 got MADE continued to get squeezed yesterday. BIDU also has rallied 20 points off its recent low. It has much more overhead resistance than does AMZN, but that's a nice rally.



On the early morning pullback to the EMAs, I placed an order for 1,000 shares at 130.55, but...



..."those buzzard faces" only let me have 300 shares. UGH. I really "shoulda" made it a market order since I cut it so close to those EMAs. The low right there was 130.53, just below my order. I sold the shares on the retest of the early high for a $375 gain, which "shoulda" been more like a $1,200 gain. My bad. Sigh...



FCX had a nice recovery off its morning low. I bought 2,500 of it at 48.22 on a pullback to the EMAs with a mental stop below 47.90 (horizontal red line).

The stock put in a new high on the session, at 48.54, so I raised my stop to "anything that looked like it was coming back in my face." The daily chart still is bearish, so I didn't give the trade much room. When it didn't follow through on the upside breakout above 48.52 - 48.50, I threw it in for a $300 gain and called it a day.



The remainder of the session in FCX proved to be quite interesting. It put in a little H&S Top (neckline: 48.09 and 48.11), broke it nominally ("in name only), at 48.10, then rallied and knocked out the 48.37 high of the Right Shoulder (horizontal yellow line) AND took out the 48.54 high of the Head (horizontal red line).

The upside takeout of the Head puts 48.97 IN PLAY as long as the 48.09-48.11 neckline holds up:,

48.54 - High of the Head
48.11 - The more conservative of the 48.09-48.11 neckline data points

48.54 - 48.11 = 0.43 points of upside

48.54 + 0.43 = Target: 48.97 IN PLAY

Additionally, the chart has a nice look to it. The EMAs now are "in gear" for a rally and the upside takeout of the 48.52...48.50...48.54 highs suggests a rally to about 49.60, as long as 48.50 holds up, as support.

48.50 - The most conservative of the 48.52...48.50...48.54 highs
47.40 - Low

48.50 - 47.40 = 1.10 points of upside

48.50 + 1.10 = Target: 49.60 IN PLAY

If the 49.60 target should get MADE, that gets FCX back to Triple Validated Resistance.



The key numbers that The Bulls need to take out continue to be:

1. 49.65 - The Triple Validated Resistance High
2. 49.90 - The Double Validated Resistance High
3. 50.38 - The High at Blue #4 in the Bull Flag/Channel



Gain on the session: $700