Nearest Resistance: $340
Nearest Support: $310
Catalyst: Technical Setup, Fire Phone Hangover
Amazon.com (AMZN - Get Report) is correcting 1.44% on big volume this afternoon, seeing extra attention on the heels of the firm's Fire phone announcement earlier this week. But while investors position themselves around the online retailer's exciting new gadget announcement, there's a big technical setup coming together in shares of AMZN.
Amazon has been a major laggard in 2014, dropping more than 19% since the calendar flipped to January -- but with a classic inverse head and shoulders pattern in AMZN right now, this $148 billion retailer is starting to look "bottomy." The breakout level to watch is $340. If shares can push through that $340 price level in June, then Amazon becomes a high-probability buy.