When I see a huge price cluster zone like the one on this daily chart of AMZN ($255.70, down $2.05), I don’t know whether or not the market will hold above it for sure.
What I do know however is that it is a rather important decision. As long as price remains above it, I want to look at some bullish strategies!
The first zone we are looking at here comes in at the 247.79-252.03 area which includes the coincidence of at least 10 Fibonacci price relationships. There are multiple retracements, extensions and projections in this zone that have come together within a relatively tight range.
Bottom line, I’m looking to take buy triggers with the maximum risk defined below the low end of the first cluster zone at 247.79-252.03.
There are also some Fibonacci timing parameters that also support a scenario for the resumption of the rally in this one. These cycles are also illustrated on the chart below.