Amazon.com (AMZN) is bouncing higher today after tagging a major trend line. This should be no surprise to technical investors and traders as the trend line is major. Ultimately, this trend line is supported until broken and should be respected as such. However, once this trend line is broken to the downside, there is a potential for a 20% drop in Amazon.com.
The Amazon trend line stretches from the March 2020 lows and has been hit six times. That signals it is an epic (major) trend line. As of now, Amazon is bouncing off the trend line and could even trend to all-time highs. However, every good/smart investor and trader should follow this level. Any break, expect a 20% downside quickly.
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