Up first is online retail giant Amazon.com ( AMZN), a name that I last talked about a month ago. At the time, Amazon was forming a long-term rounding bottom pattern, a setup that triggered on a move above the $285 level. Well, that breakout happened earlier this month. So how do you trade it from here?
Since the breakout, Amazon has moved almost 8% higher without a single down day -- until this week, that is. With a consolidation in AMZN that mirrors the one in the S&P this week, there's still a trade to be made here. That's thanks to the short-term rectangle pattern that's been forming in shares.A rectangle pattern is formed by a pair of horizontal resistance and support levels in shares of a stock. It gets its name because it essentially "boxes in" shares. For AMZN, resistance comes in at $310 and support is down at $305. That's a super tight range for such a pricey stock, but the implication is that traders will get a much quicker trade signal here. Buyers should wait for a move above $310 before jumping into AMZN; if shares slip below $305, it's a sell.
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