Amazon: Symmetrical Triangle
As we can see at the chart below, Amazon is drawing a symmetrical triangle pattern. This pattern is identified by drawing two trendlines that connect a series of sequentially lower peaks and a series of sequentially higher troughs. Both trendlines act as barriers that prevent the price from heading higher or lower. However, once the price breaches one of these levels, a sharp movement often follows.
So we have to wait until one of these trendlines will be broken. A break below the lower trendline is used to signal a move lower, while a break above the upper trendline signals the beginning of a move upward.
In the meantime, we’ll try to find out about the chart to discover what trendline could be broken… Today we can see a doji star candlestick just in $76,32 resistance level (corresponding with April 18th gap). It seems price might stop the climb, but we’ll watch out for this resistance level. If it is broken, we can see new buying pressure, and price may head towards the upper trendline. If this resistance level can’t be broken, price will fall until reach the lower trendline (this possibility is more real as the doji star shows us).