Amazon, Inc. (NASDAQ:AMZN) is putting in the sell signal of the year. This stock has been a one way freight train, but that is about to reverse hard. Take a look at the price action in 2016. The stock is up from $475 per shares to a high yesterday of $757 per share. Just in 2016 that is a gain of almost 60%. The overbought nature of this stock is only a minor part of why it is going to be a huge sell with a target of $600. The main factor has to do with the sell signal seen on the chart in the last 24 hours. The stock rallied in the past week into Prime Day (a made up shopping holiday). Yesterday, the stock sold off on rumors that sales were not going to meet expectations. However, today good news on sales popped it back up...for a short while.
This good news failed to keep the stock up, let alone take out yesterdays highs. The fact that yesterdays highs did not get breached is a sell signal of epic proportion on a stock up 60% in 2016. Investors with a technical analysis background are rushing to sell or short. If the key up-sloping trend line is broken to the downside (seen in the chart below), Amazon has little to no support until $600 (a key gap fill). This might be one of the best shorts in the stock market for the second half of 2016. You heard it here first.
Chart: http://ift.tt/29ET0F2
Gareth Soloway InTheMoneyStocks
Submitted July 13, 2016 at 01:52PM by inthemoneystocks http://ift.tt/2a9SBsy
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