E-Commerce Giant Struggles After Bearish Price Gap: Chart of the Day

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Amazon.com rallied into its last earnings report, and crashed on a very weak outlook. Now traders may need to mind the price gap that resulted.

So far, AMZN hasn’t even tried to fill that chasm, which creates the risk that it will become a longer-lasting scar on the price chart.

Second, relative strength versus Consumer Discretionaries was slowing before the poor results and has only worsened since.

The selloff also represents a false breakout. The bulls tried to drive prices into new territory and were punished. This can be very negative for sentiment, and provide plenty of ready sellers if the stock tries to reclaim the highs.

The post-gap highs could also be problematic because …

For more, please click here to view the related idea and chart analysis on TradingView.

Amazon.com (AMZN), daily chart with selected patterns, courtesy of TradingView.
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