AMZN Update

On 10/25 before the market closed and before earnings, I said that if I had time I would have gone long some AMZN calls, there was something there I liked, earnings weren't good and AMZN was down I think 12+% in after hours, but closed only down about 1%. The next day AMZN closed up nearly 7%.

There's still something there I like and AMZN has pulled back a bit making an entry a bit easier to swallow, still I view most longs as speculative based on the longer term charts and the big picture probabilities.

 At the white arrow, the day I said I liked AMZN about 15 mins. before the close, although there was earlier analysis as well. At the green arrow, the day after earnings that seemed not to go well, however whatever we saw in AMZN played out that day even with disappointing earnings. The last 2 days AMZN has done nothing technically important to the upside or downside.

 The Trend Channel shows where the AMZN long stop would have been and shows where AMZN would change the current downtrend, around the $241 level on a close.

 On a 60 min chart there's a positive divergence, it isn't huge and the big picture for AMZN doesn't look good, if I had to take a position and not touch it for 6 months, it would be short, but I think we can make some money on the upside in the near term.

 The 15 min chart, as it should, has more details and a better looking positive divergence right before earnings came out.

 The 10 min chart has even more detail, notice most of the positive divergences are along the timeframes seen in the overall market, with maybe a little more positive 3C signals in AMZN. The recent pullback has been in a leading positive divergence on this chart.

 Now since we know there are longer term divergences there, we want to look at the short term for timing, the 1 min shows the first positive divergence of the last 2 days  as well as the negative that sent AMZN in to the 2 day pullback.

 We want to see migration of the positive divergence near term and we do on this 2 min chart with a leading positive divergence developing this afternoon.

 The 3 min chart shows a leading positive position.

And the 5 min is positive, it looks a little early for the trade, but it's speculative and I don't want to miss AMZN again.