The Candles Indicate Amazon.com (AMZN) May Be Cooling
06/12/2009 12:01 am EST
Amazon.com (AMZN), the Internet retailing giant, has had a terrific run this year. However, looking at the candles and volume for the past few days, it appears it may be topping out and ready for a rest.
Long term, I am very bullish on Amazon, however, short-term signals indicate an opportunity to short the stock for a day or two only.
The short candles combined with decreasing average volume over the past four days tells me it's going to head down just a bit before it resumes the climb up.
Furthermore, during the past five days, traders on the International Securities Exchange (ISE) have bought to open 9,733 puts, compared to just 5,581 calls.
By Tim Bourquin, Trading Content Director, MoneyShow.com