Market Overview, Inc. (NASDAQ:AMZN) Weekly Pattern Could Profit Longs

The stock price for, Inc. (NASDAQ: AMZN) hit an all time high of $408.06 back on January 22, of this year. This equity was considered to be the teflon play on Wall St. It seemed like anybody who tried to short it was met with a rude awakening, as the share price just kept climbing higher. Anyone who ever tried to come up with a fundamental case against its valuation, was also made to look foolish.
However, 2014 has not been so kind to, Inc. (NASDAQ: AMZN). After making a peak earlier this year, the share price came off in a big way, and the darling status that had once surrounded Amazon was a distant memory. All the bears came out of the woodwork and it seemed like everyone who had been giving CEO, Jeff Bezos a pass in the past, was quick to start criticizing his every move. The negative sentiment actually pushed AMZN well into bear market territory, as it tumbled 30% from its highs!  On May 9 2014, the stock hit a low $284.38, and has had quite a move higher. Since that low was made, AMZN shares have actually gained about 20%. That is a healthy increase for any investment, but the best might be yet to come.
As a professional trader who uses technical analysis for a living, I look at the AMZN chart and there is a very interesting pattern forming on the weekly time frame. This pattern is known in the technical world as a "head and shoulders pattern." Now this trade has not triggered yet by confirming the pattern (confirmation is what the smart trader will wait for before acting on this pattern. Far too often the amateur will enter before the pattern has confirmed - save your money and learn confirmation which is a proprietary tool of the PPT Strategy), but if it does,, Inc. (NASDAQ: AMZN) stock could get bid back up to all time highs with a target of $450. So while a 20% gain is nothing to snicker at, the real move higher to make money is yet to come.
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Parm Mann
Elite Round Table
Follow me on twitter: @ParmMannTrader

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


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