AMZN _ Short Breaking Lows

22 thg 10, 2011

Amazon has my attention: I have labeled the "3RD LOW" since February on the chart to show you how to define when a strong up-trend is no longer in place. The entry technique with this method is to sell breaking the 3rd low with a stop over the high. However, that has already occured. The stop is now at 245 with that method, which is quite wide at roughly 4-5%. A second entry technique is to sell short on a new low following the break of the 3rd low and that occurs if AMZN breaks Friday's low. The first target is the obvious support zone labeled with a green circle around the $210 level. You can trail your stop to capture a large downtrend, but that is up to you.