In today’s livestream, Jesse went over the $AMZN chart that he posted in the Discord.

A Market Sniper member had messaged Jesse to ask his thoughts (a perk of membership!), and Jesse wanted to share with the team.

Jesse said he’s not personally short on $AMZN but there are reasons why this might be an interesting short.

$AMZN is trying to break all-time highs

First, we’d note that on a weekly timeframe, $AMZN is ultra bullish, and it’s trying to break its all-time highs.

As we know from bitcoin, breaking all-time highs can be challenging, since it’s a natural place to take profits and shorts after a 133% run up.

Similar tech giants starting to pullback

We also know that similar large tech companies, like $AAPL and $NVDA, are starting to slow down here too.

So the question is: Is $AMZN going to catch up?

Bearish Divergence + Reversal Candle

Right now, the $AMZN daily chart is showing one of Jesse’s favorite setups:

1. Bearish divergence—where price is making higher highs and RSI is making lower highs

2. Reversal candle—the yellow candle on the Sharp Shooter indicator

This is similar to the $DOGE setup we went over our How to Trade $DOGE.

Price target

If $AMZN has a retrace, there’s several reasons why it might come back to the $160 to $165 area.

1. There’s a gap in this area
   These gaps mean that there’s no volume traded in this area, and price will naturally want to fill that area if there’s a retrace.

2. The VWAP is in this area
   The VWAP is a tool in TradingView that calculates the average price for an asset, weighted by the volume that was traded. Price will often revert to this average price in a pullback.

3. Bearish divergence started in this area

   Often, the angle of the bearish divergence line will translate into the area that price comes back to. You can see that in the pink dashed line.

4. .382 fib retracement level
   If $AMZN were to retrace 38.2% of the move from the bottom, it’d be in this $162 area.

More confirmation

Note, though, that this would be early for a short on $AMZN.

Why?

1. High timeframes are still super-bullish.

2. Price hasn’t broken the trendline or closed below the trending dots.

3. There’s no lower high yet.

Depending on your strategy, this short might not be ready yet.

But we want to identify it early so we can set up the trade for where we’d want our entry to be, stop loss and take profit, so we’re ready for it when the time comes.

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Disclaimer

The contents of this newsletter are expressed in my opinion only, none of which is financial advice. Always do your own research as this information is intended for educational & entertainment purposes only.