Amazon.com has been trending steadily higher for the better part of four months, paving the way for a great “buy the dip” opportunity during the current wave of strength. Read more..
Buy the Dip
The Modified PEMA Crossover signal has fired a Long signal after yesterday’s rally, offering a solid opportunity to buy the dip during the current bull trend. This signal is highly predictive in trending markets and usually leads to new highs (or lows) during clear trends.
Also, the fact that yesterday’s bar was also an outside reversal candlestick further helps the bullish cause.
To read more about the Modified PEMA Crossover system, CLICK HERE.
Buy the Dip, Part II
Amazon.com is also bouncing off the monthly pivot range, which has developed a two-month Higher Value relationship. This type of relationship allows you to pinpoint amazing “buy the dip” entry points during trending markets.
This behavior, coupled with the Modified PEMA Crossover signal, could lead to a nice rally to new highs within the current trend. Look for price to probe somewhere between $174.35 and $176.55.
As long as price remains above $161, there’s a good shot to reach price levels above $170. Otherwise, a violation of $161 could lead to a technical failure back toward $152.50.
Let’s see how this plays out!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss
