Amazon.com Chart Pattern Alert: Head And Shoulders

By Gareth Soloway of In the Money Stocks

President & Chief Market Strategist at IntheMoneyStocks • Nov 10, 2020 at 3:00 PM EST

There is a classic head and shoulder pattern formation that signals a downside to $2,250 in the coming months. That would be an epic drop of over 20%.

Shares of Amazon.com (AMZN) are falling sharply again today as the COVID-19 plays unwind. While the drop is decent, most investors are still very bullish on the near-term stock price performance. Based on this Amazon.com chart pattern, they should be very careful. There is a classic head and shoulder pattern formation that signals a downside to $2,250 in the coming months. That would be an epic drop of over 20%.

The Amazon.com chart pattern has not triggered yet. It will trigger, meaning it will engage and head towards target once $2,900/share is closed below on the daily chart. Should this pattern fully play out, it bodes very badly for the Nasdaq 100 and other technology names. The head and shoulder pattern is clearly seen in the chart below. Look for the break within the next week or two.

(Click on image to enlarge)

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