Wednesday’s surge decisively exceeded a key midpoint Hidden Pivot resistance at 596.72, opening a path to 658.08 in the weeks ahead, or even to as high as 719.44. The rally can be bought at any time using our formidable bag of tricks, but AMZN would need to pull back to 596.72 before we could use a ‘mechanical’ bid to get long the easy way (although not the least risky). In any event, traders of every stripe should lean bullish at least until 658.08 is reached. I prefer to trade AMZN shares rather than options, but calls can be used if they are bought in timely fashion. In practice, that would mean doing so at the targeted lows of minor corrective patterns. The goal would be to turn naked calls into riskless vertical spreads by shorting options of a higher strike if things go our way. ______ UPDATE (April 28, 10:52 p.m.): Today’s wicked reversal was the nastiest bull trap we’ve seen in this stock in a while, especially since the gap-up opening would have taken out a platoon of bears as well. The avalanche that followed won’t necessary kill the bull and the rally targets proffered above, but it does suggest that AMZN will have to fall to at least 590.26 to get traction. That would breach the ‘external’ low at 592.31 (see inset, a new chart) highlighted in the chart, generating not only a bearish impulse leg, but a bright yellow flag for bulls. _______ UPDATE (May 1, 10:06 p.m.): Few bears will have survived Friday’s spectacular whipsaw on strong earnings. Now it’s bulls’ turn to be extra cautious. I’d suggest using 679.60 as a rally target, or 719.44 if any higher. ______ UPDATE (May 3, 1:03 a.m.): DaBoyz have caught shorts in the ringer, and now if AMZN pushes decisively past p=689.39 (see inset, a new chart), it could run up to 707.09 or even 719.44/724.78. _______ UPDATE (May 11, 6:29 p.m.): Amazon’s psychotic short squeeze apexed on Wednesday at 719.00 — 44 cents from the target proffered here a week ago with the stock trading 35 points lower. Given the clarity of the target, I doubt AMZN will make significantly more headway in the days ahead. I didn’t establish a tracking position for the move, but I would be grateful nonetheless to hear from subscribers who caught a piece of the moon shot._______ UPDATE (May 18, 9:48 a.m): The stock in fact did not make much headway above my 719.44 target. It head-faked to 722.45 the following day, then began a dive over the next four days to a so-far low of 688.76 that is nearly $34 beneath the recent peak.
