A Tale of Amazon, Microsoft and Intel as of Nov 2, 2018

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?

Update: Amazon as of Oct 27, 2018

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.