SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 226.10+2.5%Nov 24 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Wildstar who wrote (1373)1/23/1998 3:55:00 PM
From: Candle stick  Read Replies (4) of 164684
 
Lets take a look at the technical aspects of todays trading. This is a top reversal day also known as an 'engulfing' day or an 'outside' day. AMZN opened the high and went straight down on heavy volume to close the lows. It engulfs the entire previous days action. This is a TEXTBOOK reversal signal, and extremely important.

Now, what to make of it. For examples of previous type days in AMZN get out your charts and look at Sept. 24, 1997 and Oct. 31, 1997. Each of these days was also an engulfing top that resulted in dramatic price declines:

On Sept. 24 the high was 57 3/4 and the stock dropped to 42 1/4 in 17 days. Thats 15 1/2 points or a 27% decline.

On Oct. 31 the high was 65 1/2 and after the engulfing top AMZN dropped to 44 in just 8 days. Thats 21 1/2 points or a 32.8 % decline.

What does that mean for today? Well todays top is even more significant because it occured AFTER the earnings report. I would expect AMZN's price to drop AT LEAST 27-32%. From todays high of 64 1/8 that would be a target range of 42 1/8 to 47 5/8 ............probably FAST, 8-17 days or LESS.

That is the INITIAL target. I expect it will continue lower than that a few weeks later since the FLOAT will be increasing. The previous 2 engulfing tops in Sept. and Oct. did not have the added bonus of 19 million shares looming over the market. I stand by my prediction that AMZN will be low 30's by next quarter report. Then I will reevaluate. Best of luck to all.............;^)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News