AMZN Picture Perfect
Updated: Jun 29, 2021
Been watching this for a while with 4 weeks of tight weekly closes. Something was set to ignite it off especially after yet another stellar earnings report. Thoughts from the weekend to our members:
On Friday it broke above the short term downtrend, but didn't have the power to move higher. Monday it came back to break the down trend, but ended up putting in a indecision candle above the downtrend.
In the midst of Monday's action, we saw this call sweeper come in midday, so it was a trigger for a potential catalyst to the upside. I used it to get long weekly calls and notified the room. This can be considered risky, but experience is our guide, so it was confident setup. If needed, you could always buy further out.
I took some off on the initial morning pop to get back the capital outlay and raise up stops.
I sold some more on the sideways intraday action to ensure a green trade and to be able hold on to the rest for a continuation pattern.
The next morning we saw the continuation pattern, so I took off the rest of the position (these eventually closed at 46, but I usually don't hold weeklies past Wednesday). Some of our members did fortunately hold on and they were able to bank additional gains.
It's always good to have a plan of action when reviewing trade setups. Having this on the list and seeing potential wise guy activity helped pick up a solid gainer in 2 short days. These type of trades help make the week of otherwise sideways action, profitable. Remember, these don't always work, especially in a choppy environment! Trade with a plan,