AMZN Follow Up

AMZN has been one of my favorite "potential" set ups and it has set up. I don't dispute the chance that it's breakout move could be stronger, I just don't feel it's a significant risk and of little draw down if it occurred, I look at it as more of a delay than a real risk considering the charts.

 On the daily chart, this is the FRP concept laid out and the reason for the expected "strong" upside move out of the accumulation range from August, this was laid out back then before accumulation was even finished as it was obvious with so many charts like AMZN, so close to a very useful (logistically) set up for Wall St. considering their trade size.

 This is the hourly chart, you can see volume picked up on a break above resistance, this is the point of the head fake breakout,, Wall St. can't put on a short the size they would normally trade without there being shares available to short in to without dropping the market, therefore they need demand from retail and the easiest way to get it is to push a breakout that retail will chase, that gives them their demand/volume that they need to sell short in to.

 The 4 hour long term 3C chart from accumulation on a head fake break below support that started the uptrend, that's the same concept as now except in reverse (for buying rather than selling/selling short). And look at 3C now, a large leading negative right where it should be telling us what the highest probability is as far as what Wall St. is doing in AMZN.


 Mid term charts are in a good position like this 15 min as well.

And now we have the move up seeing distribution along with most other market averages and stocks.

Note the head fake move below support where there was accumulation to hitch-hike (short term trade) AMZN long, the more of these I see, considering the $11 gain in gold at 1:57, the more I suspect someone knew about the F_E_D's decision yesterday.

If you like the position and maybe it's new to you, you might enter in phases as I have done, I think here would be a nice area to start a position and any further upside would only be better as long as the charts stay negative and they appear they will.

However, I DO NOT condone dollar cost averaging to wean out of a losing trade, phasing in to a trade is a plan that is established before you enter the first share and it must be part of your risk management before you enter the first share, it's a strategy, not a bad habit.