I'm looking for a new entry in AMZN as I closed yesterday's Put from last Friday (I believe) for a healthy 242% gain.
This is the risk I took yesterday and where a potential problem may be for me. AMZN as of now has confirmed the bull-trap/head fake move above resistance with a 3 candle reversal pattern and a close below former support. there's a lot of overhead resistance now in AMZN, whether it can bounce up through that is the bet I took. Usually when strong resistance/support breaks, there's a shakeout move, when I closed the puts yesterday, I was betting on that shakeout move to come to be able to enter new put position at better prices with a longer expiration.
There's a positive divergence on the 1 min chart that has a leading component to it, but this is still only a 1 min chart.
The 2 min chart has shown several positive divergences and a gap fill and is positive here. Whether a gap fill is possible or not, I don't know, but any upside would be welcome to short in to strength.
The longer term charts from 15-60 min show negative leading divergences, these are more important to the overall trend, that is why I would not have a problem shorting AMZN in to intraday strength.
30 min
60 min at a new regional leading low.
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