Long term players do not look at the charts like the active traders. They care much about the trend and the long term averages. Here is a chart of Amazon, Microsoft and Intel with their monthly 12, 24 and 36 period simple moving averages.
Are these long term players concerned?
Hint: Of course they are since the beginning of this year. That’s why we have this sell off.
The more important question: Are they willing to buy these market leaders now?
Amazon weekly chart below. First target tagged.
What to expect next?
If Amazon starts to bounce from here but fails to clear midpoint of this drop, the green zone below is the next downside target.
If the blue zone turns into resistance, it will be the nightmare scenario for bulls.
Another great example on how not to trade with your opinion.
Blue up arrow marks the retest of the orange zone (and the flush low). Confirmed by close that the orange zone holds so a run for the previous swing high started.
Here is a weekly chart of Amazon.
Making measured moves in Amazon is part of its habit all the time.
It is right on time to enter its correction / consolidation phase until the election is over.
The key support areas are highlighted in the chart.
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