AMZN on a Weekly Chart

Even though the daily chart in Amazon (AMZN, $359.05, off $0.75)  does not look awesome….the WEEKLY chart gives us reason to believe that we may start to see some higher prices in this one.

The weekly chart pattern is still a rather bullish one, with a pattern of higher highs and lows and price above both the 50 and 200 simple moving averages. There was also key support on this weekly that included a 100% projection of a prior decline, a .618 and .382 retracements of prior swings at the $335.53 – $341.65 area.

If price continues to hold above here, we have a very healthy upside potential to the $427 area.  Even if we only see a correction back to the recent high, the upside potential is still rather healthy looking at a .618 retracement at the $381 area that could be tested.

cb 2 27 amznweekly AMZN needs at least a few weeks to play out.  Bottom line, I’m buying some April call spreads in AMZN looking for at least more of an upside correction and maybe more.  AMZN has Extended Weeklys (4/04) and regular April expiration (Thursday 4/17). If you choose the 4/04 scenario the 362.50 – 382.50 bullish vertical for ~$6.40 could work, or with the regular 4/17 expiration the 365 – 385 vertical for ~$6.30 could be the choice.

I consider myself WRONG on the trade if the 2/24 low (~$343) is taken out.