A triple top formation makes us a bit skeptical about its trend in today’s session
The recent developments that have taken place in Amazon.com Inc. (NASDAQ:AMZN) may have gained traction from many investors, however, a word of caution is advised to investors. Although the Bellevue based retailer’s stock registered three 52-week highs in yesterday’s session, a triple top formation makes us a bit skeptical about its trend in today’s session.
Anyone having an idea about technical analysis would sure know that Triple top is a reversal pattern, after which prices tend to revert back. Although a glance at the pre-market trading may reckon the continuity of the bullish trend in today’s session, prices may pull back from these levels. The bulls are currently the dominant force here, as the bull/bear power indicator suggests, but it is also a risky level for fresh entry.
There have been positive developments over the weekend which reckon that Amazon stock still has a lot of potential, it seems more of a profit taking level. The $370 billion company’s stock is trading near yesterday’s resistance level in the pre-market session, but a pullback is very much on the cards. TheCountryCaller has been holding bullish views for a while now and we believe that it is a lucrative pick in the e-commerce sector.
But the current situation demands a lot of patience by investors. The recent financial results of the company hint that Jeff Bezos is well on his way for a bright future ahead. TheCountryCaller has also discussed the possibility of four-digit stock prices in June, our view has been complemented by renowned brokerages such as Bank of America Corp. The consensus PT stands at $854, which reckons an upside potential of over 10%. We expect the stock to take a dip before it gets going to new heights.