Tuesday, March 20, 2012

AMZN bullish breakout

After 2.5 month 31% down trend, and 2.5 months of side-way trading, AMZN rose 4% today with heavier than average volume with no significant news while broad market is down.

The fact that this rise happens when AMZN hovers around 50 DMA for a couple of weeks and 50 DMA is slightly tilting upwards increases the credibility of this action and the possibility that this action leads a new short-term trend.

On downsides, at 141 trailing PE, it's trading at very high premium; AAPL, the tech sector leader and heavy weight is doing a parabolic rise lately, whose potential fall will lead to a crash in broad sector.

Possibility of a short term trend to retest all-time high $246: 60%
Possibility of a fake-move: 40%

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