Why Amazon.com Will Drop Fast
On Friday, Amazon.com, Inc. (NASDAQ: AMZN) made a new all time high, hitting $320.57. The valuation of this stock continues to befuddle Wall Street investors as it has a P/E in the stratosphere. So why will it drop now? Simple, the chart is the only thing that has predicted where this stock is going and it shows a pull back now. Please take a look at the chart below. Note that every time this trend line has been tagged, the stock has had at minimum a 10% pull back. History will repeat itself. This method of catching the short on Amazon.com is far better than any valuation Wall Street analysts try and use. They have always been wrong as the stock has defied gravity. If you followed this trend line, you would have been able to catch every major pull back in the last year.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.