AMZN is trading in $26 channels and is at the top of the latest $26 channel. Besides it is also at the top range of the bearish rising wedge resistance line and finally the forward PE is ~ 50. Could it still rise above this massive resistance wall? - just to trap some bulls like it trapped some bears earlier this year when the bears thought that AMZN is going to hell, even to single digits, only to trap them and shoot sky high since then!
This is a tricky monster stock - there is not much short interest now to justify the run in the prices lately. Its clear that this is sheer buying frenzy that was started by the big boys, which eventually will suck in some retailers only when it reaches extreme (125 anyone?) just to wash out all shorts and suck in new longs only to make them weep later?
AMZN - am gonna watch you like a hawk!
EDIT: Monday 10:40AM - If the AMZN train continues to close 2-3 days positively, it may just go towards the higher end of the new $26 challenl starting from 119, i.e., it may test the $145 area before any weakness... I, for one, think that so much upward movement is unlikely given the overbought levels its sitting at right now... you never know for sure what this crazy stock will do though.. so, until then I am long Nov 120-115 put spread, got in at 124 this morning.. and I am ready to close it as soon as I see AMZN trading over today's high from this morning..
EDIT: Monday 10:40AM - If the AMZN train continues to close 2-3 days positively, it may just go towards the higher end of the new $26 challenl starting from 119, i.e., it may test the $145 area before any weakness... I, for one, think that so much upward movement is unlikely given the overbought levels its sitting at right now... you never know for sure what this crazy stock will do though.. so, until then I am long Nov 120-115 put spread, got in at 124 this morning.. and I am ready to close it as soon as I see AMZN trading over today's high from this morning..
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