I just took a nice gain today from a bullish put spread I opened a couple of weeks ago when AMZN was undergoing a harsh selloff near 3300, When it was beaten badly into an oversold condition with a support level underneath, I figured it would try to bounce back. I'm glad I bet on it. Well what a two weeks time would do for people's mood. All of a sudden, AMZN has been lovely chased up in the past week and at today's high, it was in a totally opposite situation: quite overbought for the short term. Right now, it is flirting against the upper boundary of its multi-month long trading range. As you can see below, AMZN tends to go sideways for months before breaking up in a big way. The million dollar question is whether or not AMZN will break out to the upside this time as well. Sure it is possible but I doubt it. See how it broke out last time: it nosed down hard first before shooting up on a higher volume. This time it moved up on a quite muted volume without momentum to support. I suspect it may very likely follow its last footstep to come down first, potentially a hard one. Maybe we will see $3300 again or even lower if history is any guid. I personally opened a short position today to test my luck!🤗
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