Multiple Time Frames and Overextended Amazon

Last week on The Final Bar, one of our Mailbag questions related to Amazon.com (AMZN) and how far it has reached above its 200-day moving average. This phenomenon speaks to the long-term strength of AMZN’s price movements, the short-term overreaching of the price since the March market low and the high likelihood of further upside for the stock.

I always tell people that there are three trends to concern yourself with: the trend you’re trading, the longer-term trend one level above your time frame, and the shorter-term trend one level below your time frame.

You can read more over at StockCharts.com.

RR#6,
Dave

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. Please see the Disclaimer page for full details.