AMZN Is Setting Up For A Short

September 30, 2014 0 Comments

Amazon has been trading in a range below the Ichimoku Cloud for the past 10 trading days. The lagging line is just touching the edge of the cloud and is looking like it will do a clean break. Watch the lagging line for that break. If we get that then AMZN would setup as a good short. If the lagging line “hooks” we will need to wait until we get a clean break. I would use the top of the cloud as a stop with an initial target of the white trend line at $305-$$310. Option traders could watch for a small bounce and sell a credit spread at the $335 level.

amzn2

This is a trade that I am watching closely to setup so I can sell call credit spreads on with weekly options. It may even setup as an 11 hour trade. Not sure what an 11 hour trade is? Join our email list and contact me and we can go over these style of trades.

Trade smart,

Joe

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