AMZN: Top end of expanding triangle Couple of Trump deadlines coming up, the Chinese 25% tariffs and the funding for the wall/slate/whatever. As previously mentioned, I am of the opinion Trump is over promising and will continue to under deliver. He will be reluctant to look like he caved again. Which company will be the biggest victim of higher tariffs and maybe another shutdown? AMZN. AMZN works off low pricing and no prizes for guessing how much of AMZN products are sourced from China. The potentially higher tariffs coupled with weak consumer sentiment mixed with the probability of another government shutdown will be painful for AMZN.
Technically speaking, AMZN is:-
- hemmed in an expanding triangle formation or commonly known as megaphone pattern. This is a bearish pattern
- hemmed in by the 200-days MA
- MACD has reversed
- the 50-dma, 100-dma are trading below the 200-dma. Pick your favorite version of the death cross, AMZN got them all.
Top end risk of c.$1780 vs. lower end of megaphone pattern at c.$1250 gives a c.1:2 risk reward.
