In an uptrending market, the two main types of technical setups we buy for swing trading leading individual stocks are Breakouts and Pullbacks.
Over the past four weeks, Internet giant Amazon.com ($AMZN) has been in pullback mode and may soon provide a low-risk buy entry with a positive reward-risk ratio.
Because $AMZN has retraced just 9% from its July 2013 peak down to its August low, the daily chart still looks healthy. Furthermore, $AMZN continues to look great on its longer-term weekly and monthly charts.
In this 3-minute trading strategy video below, we briefly analyze the daily, weekly, and monthly charts of $AMZN.
We conclude the video by showing you the ideal price level where a swing trader might consider buying $AMZN on this pullback.
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