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VIDEOWhat's Ailing Amazon?
A simple case of profit-taking into quarter's end?
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One answer is that Amazon had been hyperventilating like Fay Wray in the palm of King Kong's hand: It scaled the advance up from March ahead of the pack. See the weekly chart here:
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So, it may be a simple case of profit-taking and distribution ahead of quarter's end.
The daily chart hasn't turned the 3-day chart down yet, but a break of yesterday's lows today will turn the 3 day chart down on 3 consecutive lower lows.
The daily chart from the beginning of 2009 shows 2 complex consolidations at the 50-day moving average, which currently stands at 80. With Friday’s option expiration looming, this 80-level coinciding with the 50-day beckons.
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The 10-minute chart for the last 3 days shows a mini inverse head and shoulders with a possible inverse right shoulder (bullish) near 82. If the right shoulder is snapped, the expectation would be for a quick drop toward 80.
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