AMZN struggled to gain traction somewhat above the 975.80 correction target I’d identified. It remains viable in theory, but we’ll set it aside for a day and give buyers the benefit of the doubt because of the bullish impulse leg they created Tuesday on the hourly chart. I’ll further suggest using a ‘counterintuitive’ set-up to get long, but only if the stock retraces to a low that is closer to the point ‘a’ low I’ve identified in the chart (see inset). This will require entering on a buy-stop limit, something we don’t often attempt because of the way the stock can jump around from one tick to the next. If the tactic intimidates you, substitute a ‘mechanical’ trigger on the 3-minute chart, using a much smaller, bullish abc pattern._______UPDATE (Aug 2, 8:33 a.m. EDT): Cancel the trade, since AMZN drifted higher overnight after having gone no lower than 991.58. That’s a relatively distant 4.56 above the would-be ‘a’.________ UPDATE (Aug 2, 11:47 p.m.): Sellers are having such enormous difficulty pushing this gas-bag down to the 975.80 correction target we’ve been using that I’m almost ready to give up on it. Officially it would take a pop above Monday’s 1032.85 high to warrant throwing in the towel, but in this case we’ll stipulate that AMZN need only close above 1006.40 to put bears on the run.
