The shelter-in-place environment has created booming demand for Amazon’s e-commerce and cloud services business, and Amazon is gaining huge chunks of market share from brick-and-mortar competitors. According to my wave count on AMAZON bullish trend is almost over. if 2070 broken down then probable will fill the gap between 1950-1970 . Here we see that over the past few years AMZN stock has traded higher in a well-defined range, and that we are now right back at the lower end of said range.
Hello Traders Normally i don't do stock trading but Elliot wave applies to everything. Its very interesting that no one trade on that gap , even when its bounced up . Crypto Market Cap, BTC/USD, ETH/USD, USDT/USD, XRP/USD, Bitcoin, EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, USD/CHF, Apple, Advanced Micro Devices Inc, Amazon Com Inc, TESLA INC, NETFLIX INC, Facebook Inc, S&P 500, Nasdaq 100, Dow 30, Russell 2000, U.S. Dollar Index, Bitcoin Index, Gold, Silver, Crude Oil, Natural Gas, Corn, Bitcoin, US 10Y, Euro Bund, Germany 10Y, Japan 10Y Yield, UK 10Y, India 10Y, Moving Average Convergence Divergence (MACD). © 2020 Benzinga.com. By creating an account, you agree to theTerms of Service and acknowledge our Privacy Policy. So what is the trade setup? Active investors and traders could look to short AMZN stock in the $1,755 – $1,820 area, using a downside target at $1,670 and a stop loss at $1,865. The huge put option purchase comes six days after Amazon’s second-quarter earnings report blew expectations out of the water. Everything you need to know about the market - quick & easy. Wave “a” would have been the selloff from late July into early August, wave “b” the current consolidation pattern and wave “c” (which has yet to come to fruition) would be one more move lower, to complete the pattern. At 11:28 a.m., a trader bought 407 Amazon put options with a $3,100 strike price expiring on August 21 near the ask price at $50.011.

All rights reserved. Posted-In: Options Top Stories Markets Best of Benzinga, Thank you for subscribing! The trade represented a more than $2.03 million bearish bet. We can see that AMZN stock began a first down-move in July, and then over the past couple of weeks largely trotted sideways in a consolidation pattern that reflects investor indecision or buyer and seller equilibrium. In other words, the stock is pressing notably against support and this ultimately could lead to a break lower. All rights reserved. Benzinga does not provide investment advice. Through the lens of technical analysis one could look at this as a so called “a, b, c” corrective wave. AMZN stock has traded in a choppy fashion over the past couple of weeks, which means Amazon is looking set up for a bearish trade. Moving to the charts, we want to start off by looking at a logarithmic multi-year weekly chart.

This is to say that this level is a “confluence area,” and thus, a break below there (if and when) could trigger more selling quicker. $AMZN Overbought- Short before/after earning below 2500 only! However, the stock’s 4.5% post-earnings gain has pushed Amazon’s market cap to $1.6 trillion, and some traders may see limited additional near-term upside and the potential for an aggressive pullback at some point. When I last offered my take on AMZN stock on Aug. 8, in this column, I said that the stock is oversold and near-term downside limited, which could bode well for a small bounce trade. The near-term expiration of the puts in question suggests the trader anticipates some form of bearish Amazon catalyst on the horizon in the near future, potentially even a follow-up from Congress after the recent Washington tech antitrust testimony. 1125 N. Charles St, Baltimore, MD 21201. Alternatively one could look to buy the Nov 1800 strike put or the 1800 – 1700 bear put spread. Why It’s Important: Even traders who stick exclusively to stocks often monitor option market activity closely for unusually large trades.

Get it HERE. All rights reserved. If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com. $AMZN Bullish daily candle to be confirmed if break up 1898. A daily collection of all things fintech, interesting developments and market updates. Copyright © 2020 InvestorPlace Media, LLC. Article printed from InvestorPlace Media, https://investorplace.com/2019/08/trade-of-the-day-amazon-stock-is-primed-for-a-bearish-trade/. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. we are getting close or we already are on wave 5 then market will correct RSI, Stochastic and MACD are overbought and have bearish divergence. 1125 N. Charles St, Baltimore, MD 21201.

Amazon.com, Inc. (NASDAQ: AMZN) shares are up another 74.9% in the past year, but at least one larger option trader is betting its recent rally may come to an end soon. 2020 InvestorPlace Media, LLC. Trade of the Day: Amazon Stock Is Primed for a Bearish Trade, 5 Keys to Find Small Stocks With 10X Potential, The Slide in Netflix Stock Is a Great Investment Opportunity, Louis Navellier and the InvestorPlace Research Staff, Trump vs. Biden: Stocks to Buy No Matter Who Wins the White House, 7 Monster Growth Stocks With Double-Digit Upside, 7 Dividend Stocks To Buy For Big Returns In Your Bank Account, Plug Workhorse Stock into Your Trading Portfolio Because It Is Electric, DiamondPeak Stock Is Revving Up Ahead of Its Lordstown Merger, Why Nio Stock Could Head to Over $40 Next. Given the relative complexity of the options market, large options traders are typically considered to be more sophisticated than the average stock trader. Many of these large options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock. Nasdaq Create one. The stock has since continued to trade in the range with limited downside, but it also hasn’t manged to bounce much. Tesla Records Another Profitable Quarter, While AT&T, Coca-Cola Also Shine And Intel Awaited, Amazon Invests $100M To Fuel Mexico Expansion, Cloudy With A Chance of Resilience: Microsoft Prepares To Report Amid Pandemic Boost For Products, Whole Foods Launches 1-Hour Pickup: How It Compares To Amazon's Grocery Rivals, Amazon's Cloud Gaming Service Luna Enters Early Access, Amazon Extends Work-From-Home For Corporate Employees Through June Next Year, Privacy Policy / Do Not Sell My Personal Data. Get pre-market outlook, mid-day update and after-market roundup emails in your inbox. Bearish candlesticks with Overbought RSI and MFI suggested bearish trend targeting 2070 as 1st target then can be bounced from there and continue targeting above 2200 . Looking ahead to the seasonally more volatile September/October period, AMZN stock looks to set up for a bearish trade. Benzinga’s Take: The $2 million put purchase has a break-even price of $3,050, suggesting 4.4% downside for the stock in less than three weeks. It is also noteworthy that the lower end of the recent consolidation wave, around the $1,755 area, also happens to line up perfectly with the red 200-day simple moving average. Moving on to the daily chart things get interesting. Earnings Beat Breather? Copyright © Shares of Amazon (NASDAQ:AMZN) have traded in a choppy fashion over the past couple of weeks, not surprisingly in-line with the broader U.S. equity complex. The Amazon Trade: On Wednesday morning, Benzinga Pro subscribers received an option alert related to an unusually large Amazon trade. Note, however, that two weeks ago the stock formed what so far is a lower high against the September 2018 highs. quotes delayed at least 15 minutes, all others at least 20 minutes. Unfortunately, stock traders often use the options market to hedge against their larger stock positions, and there’s no surefire way to determine if an options trade is a standalone position or a hedge. Several of the ultra-important and mega-cap technology related names currently have similar patterns to the one here displayed on AMZN. Amazon.com, Inc. (NASDAQ: AMZN) shares are up another 74.9% in the past year, but at least one larger option trader is betting its recent rally may come to an end soon.

Thus for me this trade is over and I am looking for a new trade into the autumn period … this time a bearish trade.
Don't have a Benzinga account? Get FREE ACCESS to Serge’s renowned Stock Market Scanner with actionable trade ideas. Long-Term Investors Prefer Microsoft And Amazon Over Tesla And Facebook, Tech Survey Says. The company reported $10.30 in EPS on $88.91 billion in revenue, crushing consensus analyst expectations of $1.46 and $81.56 billion, respectively. In this case, given the relatively large size of Wednesday’s Amazon option trade it could certainly be institutional hedging.