THE WEEKLY CHART of AMZN tells all. The uptrend is clearly over and lower this equity goes as Institutional ownership falls and they try to dump on to retail investors. However, not enough buyers can line up to absorb all these shares. Why are they letting go... most are probably overweight the stock. Overweight works when the stock is working. However, now we can see FCF is falling and the balance sheet is less than healthy. This is a very risky stock to hold.
I predict a move to the $280 mark and then a small bounce to the $300 to $305 range. This should be a slow grind higher into options expiry week... AUG 15 ... Then the downside continues. Ultimately the price will move lower in the coming weeks. Maybe it just tanks now. But, be careful. Never underestimate the power of OPTIONS writers moving the stock to a more favourable price.
Im trading AMZN puts.
Good luck trading.
Disclosure: The author is short AMZN.