AMZN is retesting the September 2022 high of 128. This retest is now key for the upside continuation or a hard downside reversal and a break of this rising wedge (usually bearish). The downside resistance level that should be broken is 125.
How to trade this?
This is an excellent opportunity to short AMZN as it is now reaching the apex of the rising wedge without a so-called overthrow and a long-term downside channel upside resistance. A confirmed break below 125 will give us confidence and clarification for a downside reversal lower. This is the 4th wave of the possible 5 waves downside and it is near its finish. This should open a downside reversal to 113.5 or even 100. Great possibility for buying a put option or shorting with a stop loss above 128.
A recent rising wedge is not backed by a rising volume, on the contrary, volume is decelerating and it is the first indication that we will soon see a turn.
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