Morgan Stanley Raised its Target Price for Amazon (AMZN) to 4200 from 4000. My Four-Hour Chart on AMZN shows where the Target Price is in relation to where AMZN has been trading lately. About $1000/share and 30% beneath the target, exclaims says Mike Paulenoff of MPTrader.
The chart also shows that for the past nine months, AMZN has been traversing a wide range between 3100-3200 on the low side, and 3650-3750 on the high side.
Yesterday morning (1/10), AMZN spiked down to challenge the lower boundary in and around 3120/70, hitting a low at 3126.02 prior to pivoting sharply higher to 3233 at Monday's high-close. This AM, in reaction to the Morgan Stanley upgrade, AMZN is trading slightly higher at 3244/45, poised for continuation to challenge heavy, consequential resistance from 3300/25 up through 3430, which will need to be hurdled for my work to trigger significant new buy signals.
In the interim, let's just say AMZN's 600 point, nine-month range has been narrowed to 3300-3325 versus 3120-3170.
Bottom Line: Strength should be considered trading opportunities unless AMZN manages to chew through 3400-3430, while weakness beneath 3200 can be used to establish swing trades, provided 3120 contains any sudden, acute selling pressure.
Morgan Stanley also raised its Target Price for Tesla (TSLA) to 1300 from 1200. My Four-Hour TSLA Chart shows that Target resides about 22% above this AM's price of 1068, and about 33% from yest's pullback low at 980 (which represented a 19% correction from its 1/04/21 rally high at 1210.21).
While I do think yesterday's low at 980 established an important near term "higher-low" above the 12/21/21 major corrective low at 886.12, my preferred pattern description is to treat all of the action off of last November's ATH at 1250 as a large contracting and potentially very bullish Coil formation that will require two to four weeks of additional sideways ping-pong above 900 but below 1200, prior to fully digesting the prior relentless upleg from the March 2021 low at 539.49 to the November 2021 ATH at 1250 (+131%).
Once this digestion period is complete and provided TSLA remains north of 900 (worst case downside), I will be expecting TSLA to launch into a new upleg that heads for both the Morgan Stanley and Jeffries Targets of 1300 and 1400.
Mike Paulenoff is co-founder of MPTrader.com, a live Trading Room featuring his analysis of equity indices, commodities, cryptocurrencies, and trending stocks and ETFs.
