After successfully retesting the Falling Wedge breakout on January 13, AMZN broke out above the Ascending Triangle (in blue) to 195.94, came back and successfully retested the top of the Ascending Triangle, rallied to 196.50 and was parked just below there at the release of earnings.
As we know, the release of earnings always is a wild card. Anything can happen. In my view, the earnings don't matter; it's the REACTION to earnings that matters.
AMZN currently is called gap down, in the $174's, so it's obvious that the REACTION to the release of earnings is very poor. The $183's...$184's were Key Support since that was the Ascending Triangle breakout and the successful retest thereof. AMZN is getting whacked, well below that. The Gap Down also completes a Double Top, at 195.96 and 196.50, which puts a target of 170.46 IN PLAY, so AMZN almost will be there at the open.
Double Top:
195.94 - I use the more conservative of the two highs. Using 196.50 is fine.
183.20 - The pivot of the Double Top, or "M" Top
195.94 - 183.20 = 12.74 points of downside from the breakdown
183.20 - 12.74 = Target 170.46 IN PLAY
The $183's-$184's now are horizontal resistance again.
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