AMZN’s most recent rally died at 696.44, well below the 707.86 target I’d identified here earlier. Rather than leap to the negative conclusion, however, I’ll give the long-term trend the benefit of the doubt with an even higher target at 746.19. I’ve used a lower point-A to produce this number. Notice that the new pattern exhibits several precise hits at the midpoint pivot, 684.24. This should improve the odds for traders able to use levels x, p or p2 to initiate a ‘mechanical’ trade, either from the long or the short side. FYI, a ‘mechanical’ long from p=684.24 would require a stop-loss at 663.60. This trade is recommended only to those who are familiar with the rules of the ‘mechanical’ trade. Odds can be improved via a ‘camouflage’ entry. Tune to the chat room for guidance on this, since many who frequent the room are not only knowledgeable about the technique, but generous about sharing what they know with relative newcomers. _______ UPDATE (January 6, 10:39 a.m. EST): AMZN is swimming very strongly against the tide today, helped by a deftly executed, $13 gap-down shakeout on the opening bar that manifestly exhausted sellers. The rally looks (very) distributive, however, having failed to surpass an ‘external’ peak at 640.00 recorded yesterday. Pivoteers should position from the short side. _______ UPDATE (3:15 p.m.): The stock has come down hard since the last update, touching a so-far low of 624.18. Anyone get short as suggested? [Apparently not.]
