I’m not convinced AMZN is ready for a run to new highs, although if Tuesday’s rally is just a fake-out, it’s a pretty convincing one. The intraday high slightly exceeded the ‘external’ peak at 984.00 made last Friday on the way down, generated a bullish impulse leg on the lesser charts. It is tradeable via a ‘conventional’ entry signal like the one I’ve sketched hypothetically. This is technically a ‘camouflage’ trigger, but because the stock is trading for close to $1000 a share, even using our best risk-cutting tool at our disposal, the initial exposure would be about $260 per round lot. My suggestion is to initiate the trade only if the point ‘C’ low comes down into ‘counterintuitive’ territory — i.e., within the range 974.38 – 974.50. Be sure to take a partial profit if the AMZN goes on to hit the midpoint pivot of the pattern.________ UPDATE (June 15, 1:18 a.m. EDT): I had the wrong point ‘A’. Slide it one low to the left, and the buy signal tripped at 972.27 around 2:30 p.m. We’re too far behind the move to catch up, but you should check it out anyway to see how I missed the obvious.
