AMZN short trade setup
AMZN (Amazon com inc) has reached the top of the medium-term uptrend channel as it can be seen on the weekly chart. It has been rejected from the strong upside resistance 2600 level which is also a new high. By looking at the RSI (12) market has been warned by a huge negative divergence (price is making a new high and RSI is not confirming).
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On a daily chart, we can see a rising wedge (usually bearish) with the uptrend support coming at 2400 which will be a strong downside resistance and a wedge break potential. If 2400 gives up our short target is 2200 followed by 2000 Our trading system is indicating a potential of 200-500 USD of profit per share traded.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
