Posts Tagged ‘Sell Short’
Amazon, how high is high?
Amazon, the international internet retail shop, has recently hit an all time high. It has broken its highest resistance point until now and is swinging sideways in the last 2-3 months. My opinion is that that this can’t stay for much long. Since volumes are dropping and the shape of a possible trend is to be downwards(see the graph below), and the RSI shows the start of a downwards(selling) movement it is probable that we will see Amazon go down and break the resistance that has become a support in a downwards direction as it has in several previous attempts at breaking this level. Now may be not the best time to sell-short this stock, but after the break downwards it might be a good idea. Again, as in some of my prrevious articles this is based on the weekly chart and is meant for the longer-term investor.
This is the way the graph looks:
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German Adva–wait and see
The stocks of Adva corp have been in a stagnant position, but in a very turbulent symmetrical triangle pattern these last 2 months. The analysis I did suggests that they are near the end of this sideways pattern. The sensible chance is that they will break upwards, in accordance with their trend up to now and the position of the RSI and MOM indicators and also in alignment with the world scope as a whole. One who invests in this stock—at breakout, when he is sure of the direction of the break, stands to gain up to 40% according to my calculations and according to technical theory. It goes without saying that on break UP buy long and on break DOWN sell short.
