This clear-as-day buy signal has been right the last six times.
It’s been a tough couple of sessions for shares of e-commerce behemoth Amazon.com Inc. (AMZN) . Shares of the $474 billion online shopping stock have lost more than 6% of their market value in the last two trading sessions, the blowback from a less-than-stellar second-quarter earnings result.
In fact, shares are showing investors a clear-as-day buy signal that’s handed out profits each of the last six times it’s appeared on Amazon’s chart. Here’s the chart:
You don’t need to be an expert trader to decipher the price action on Amazon’s chart. In fact, the price setup in shares is about as simple as they get.
Since last fall, Amazon has been bouncing its way higher in a well-defined uptrend. That uptrend is identified by a pair of parallel trendlines that have defined the high-probability range for shares of Amazon to stay stuck between. Simply put, every test of the bottom of Amazon’s price channel has provided investors with a low-risk, high-reward buying opportunity. And shares are showing off their seventh buyable bounce this morning.
