Hello I am the Cafe Trader.
This week has been a deep dive on the MAG 7 and today AMZN is up next.
We are going to look at long term and short term opportunities.
We are near the All Time Highs, with one final Seller to get through before making the break.
Today we tested to see if those sellers are there still (and indeed they are). Today was a key reaction, I'm going to give you the keys to profit.
Long Term
It's important to consider how aggressive you would like to be with pricing. This list of prices should align with your conviction with Amazon.
Aggressive: $226 is where the current aggressive players are sitting. They are going to look to buy again at this level, although they should be the weakest of the buyers.
Fair sentiment: 203-210 is where stronger buyers are sitting. I think this price is still realistic to get to.
Conservative: 161 - 171 Is a great price, buyers have shown to buy this with extreme demand. Amazon at this price is a fantastic purchase, if you are holding from here or lower, congradulations.
Short term
Testing the supply and rejecting tells us that sellers are still really active in this zone. We will see how tomorrow closes, if we do not close in the supply zone, there is a good chance that net week will have some bearish winds and a great chance of testing the light demand at 226. this brings us to the two trading ideas.
1 Green line
I think we will test those sellers by next week. and i think its very possible that we break trend and touch the light demand line. If its a slow drag down to the light demand, Shorts will have to cover as soon as any real demand shows up (Light Demand Line).
Entry 226.50
Stop 221.50
Partial TP 233, or you can hold for a test of the highs (242 would suffice)
2 Red Line
If we get a Hot reaction from the supply zone, or if we close below 233.50 tomorrow, Look for a retest and short entry off the supply zone. If the reaction starts to be slow (more than 5 days of red bars) it's likely this will turn into the green scenario.
Entry 233.5
Stop 237
Partial TP 226.5
Full TP 218
That's all for AMZN Follow for more!
Also comment if you would like me to chart a stock you are considering.
thecafetrader
This week has been a deep dive on the MAG 7 and today AMZN is up next.
We are going to look at long term and short term opportunities.
We are near the All Time Highs, with one final Seller to get through before making the break.
Today we tested to see if those sellers are there still (and indeed they are). Today was a key reaction, I'm going to give you the keys to profit.
Long Term
It's important to consider how aggressive you would like to be with pricing. This list of prices should align with your conviction with Amazon.
Aggressive: $226 is where the current aggressive players are sitting. They are going to look to buy again at this level, although they should be the weakest of the buyers.
Fair sentiment: 203-210 is where stronger buyers are sitting. I think this price is still realistic to get to.
Conservative: 161 - 171 Is a great price, buyers have shown to buy this with extreme demand. Amazon at this price is a fantastic purchase, if you are holding from here or lower, congradulations.
Short term
Testing the supply and rejecting tells us that sellers are still really active in this zone. We will see how tomorrow closes, if we do not close in the supply zone, there is a good chance that net week will have some bearish winds and a great chance of testing the light demand at 226. this brings us to the two trading ideas.
1 Green line
I think we will test those sellers by next week. and i think its very possible that we break trend and touch the light demand line. If its a slow drag down to the light demand, Shorts will have to cover as soon as any real demand shows up (Light Demand Line).
Entry 226.50
Stop 221.50
Partial TP 233, or you can hold for a test of the highs (242 would suffice)
2 Red Line
If we get a Hot reaction from the supply zone, or if we close below 233.50 tomorrow, Look for a retest and short entry off the supply zone. If the reaction starts to be slow (more than 5 days of red bars) it's likely this will turn into the green scenario.
Entry 233.5
Stop 237
Partial TP 226.5
Full TP 218
That's all for AMZN Follow for more!
Also comment if you would like me to chart a stock you are considering.
thecafetrader
Trade active
Take a closer look into liquidity here. I will update the trade to prepare you for what to expect from next week.
Note
Amazon up right at that 233 level as I write this. It did get backed off a little bit. Not an aggressive buyer from Amazon so all levels and plays are still in tact. I will keep everyone posted.Note
Today 7/29 was yet another hot reaction off that supply area. This is adding pressure on the top of demand. This is suggesting we come down to test the top of demand and see the reaction. we will see in the next couple of days if a new seller comes in. Note
THIS IS IMPORTANT!- On My "minds" and X, I let everyone know that the TARIFF news was a MAJOR catalyst. a major catalyst changes the sentiment of those previous buyers. With amazon selling this strong into the close, you should be more cautious.
- For example: If your sentiment was "aggressive" you should knock it down to a "balanced" sentiment. If you were "balanced", knock it down to "conservative".
Also some things to keep in mind: The Options Market.
- Market Makers have been getting squeezed for weeks, now with this news, they would look to take advantage of this bearish sentiment and knock the market back a couple steps slowing momentum.
- The short setup and hedge worked perfectly according to the plan. re-read the Red Scenario. I will post this on my YT channel as well.
This is a very bearish close, with the medium demand not being present after the Catalyst, this suggests we could see them becoming more conservative as well.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.