Trade Idea - AMZN

Amazon shares lost 5 percent of their value on today session with high volume. In a Form 4 filed with the SEC, Jeffrey P. Bezos reported he sold 1.85 Million shares for $73.21 apiece on Friday, causing some panic on investors, which generally is not a good news for market and shareholders. The technical chart shows weakness as the stock is trading below major moving averages. In addition, MACD is losing ground and is approaching of the sell signal. Another negative indicator is KD where K line is below D line which could mean more share price decline. First support is now at $67.22.

using my "customary" signals on the weekly AMZN chart: the sell short signal has been in play on the weekly chart for a few weeks..the trending down channel has been generally bounded by the 5week sma with one exception last week closed below the 50wk ema, which is now flattening for the first time in mos...this week's high is approx the value of the 50wk ema, now at 73.57 the weekly BB is continuing to open up for this move down. AMZN was profiled today by some hot shot in the news as a good short candidate...briefing.com had it written up in the IN PLAY section

Edited by hiker, 21 February 2008 - 05:46 PM.