Trade Ideas: AMZN

Usually I will post in regards to swing option trading opportunities with 5-6 weeks timeframe for completion.

Today I want to highlight a company that lately has somewhat been "out of favor" from a trading perspective, AMAZON.

Amazon is a company with both extremely strong fundamentals and a very pretty technical picture at the moment. Look at the 5YR chart below. Very rarely Amazon has had a long and not so much volatile consolidation like the one we are experiencing now.

Let's zoom in the last 12 months of price action:

Starting in July 2020 the stock has pretty much hovered around the $3,000 level forming a very long flat base. It is true that the high struck last year at $3,600 level makes current prices look like we have had a decent size correction, however in the context of where I believe AMZN is going, the 15%-20% down from ATH is really a blip on the radar.

In my opinion AMZN is getting ready to break out and complete the last leg of the multi-year monster run-up it had sometimes within the next 12 months. Final price target is around the $5,000 level based on Fibonacci extensions before it starts a major corrective phase in 2022.

A good entry is anywhere from here where we are trading today, all the way down to the $2,950 level.

My trading strategy for this name is to buy the actual stock or preferably Leaps.

DISCLAIMER:

The above are my opinions only. Due your own diligence and trade at your own risk. Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.