Dark Cloud Cover in AMZN

Licia Leslie

Licia Leslie

Licia Leslie

By Licia Leslie

November 15, 2024

Hi Shoppers,


Amazon (Ticker: AMZN) has just made new all time highs right at the top of my pitchfork resistance:

And yesterday’s action created a Dark Cloud Cover candle which could be signaling a change in this uptrend.

 

The Relative Strength Index has dropped down below 70 and out of the over bought territory.

 

Watch for the confirmation this morning of AMZN trading lower before shopping for puts.

 

I like next Friday’s puts:

I like the 210/205 put vertical, that is buying the 210 puts and selling the 205 puts. 

 

I would pay up to $150 for that spread.

 

Support comes in at $205.91.

 

Use a close over $213 as your stop loss.

 

Trade Review

 

Alphabet (Ticker: GOOGL) did a complete reversal and traded lower. Support comes in at $173.50.

 

Thanks for Reading … See You Next Tuesday,

 

Licia Leslie

Licia Leslie

Head of Technical Analysis

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Licia Leslie

Licia Leslie

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About the Author

Licia Leslie

Licia Leslie

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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