Amazon’s latest earnings have missed on both the top and bottom line, sending the stock into a steep dive in after-hours trading. The global retailer’s shares have traded as low as $272.50, off $40 from a $313 close. Although this exceeds any downside target I could have projected using the intraday charts, the weekly bars leave room for a little more downside to 266.12., a clear Hidden Pivot support. The stock would become a screaming buy at that price, albeit with a very tight stop-loss, since the bounce could go as high as 315.49. The operating loss for Q3 was $544 million, or about 0.95 per share; a loss of 0.74 had been expected. The company also confirmed buzz that the “Fire” smartphone had laid an egg — to the tune of a $170 million write-down, with $83 million of unsold units still in inventory. ______ UPDATE (October 28, 8:38 p.m.): I put out a 305.25 rally target in the chat room but see the move as corrective. As such, the 266.12 target will stand unless 364.85 is exceeded to the upside. _______ UPDATE (October 29, 9:16 p.m.): An opening bar head-fake trapped bulls, then negated the 305.25 correction target on the way down. The short-term picture is still bullish, but not sufficiently so to warrant a play.
