What The Shooting Star Formation On Amazon (AMZN) Means To Traders

What The Shooting Star Formation On Amazon (AMZN) Means To Traders

Posted On July 18, 2023 11:17 am

While the market may still be in an uptrend and look quite bullish, there is still room for the occasional pullback. For Amazon (AMZN), this area for a pullback may be imminent. Currently, if you look at the daily chart on AMZN, you see two signs that a pullback may be close to taking place.

One, you have a bearish candle formation and, on the higher timeframe, this signal holds more weight. The second reason is due to the fact that, not only does this candle point to a bearish move, but it also happens to have formed at a upper level of resistance, lending credibility to the possibility of a pullback.

This trade may be more of a quicker trade than we are used to, so don’t get in this trade looking for a huge pullback across multiple days or weeks. Again, we are never ones to fight the trend, however, as we said previously, there are pockets or areas traders can look to scalp a move lower, such as the setup that was presented by AMZN.

If you missed this move, don’t worry. There will always be another opportunity. Keep following our daily trade idea posts and you’ll be sure to do one of two things…

Watch the full video at WEALTHPOP.com


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