Technical Summary: The long term chart of AMZN reflects the fundamental strength of their underlying business. The stock has virtually always traded at an all time high. This has extended into the last year with the stock finding its way to all time highs. More recently the stock has got a little overextended after a strong run. In our view buying at this juncture will come heavy with risk. Investors or traders should wait for a new base to form or for the stock to provide a pull back buying opportunity. The stock consolidated for a four month period before gapping up on a positive earnings update. This gap would have been buyable with a stop loss set at the gaps low. The stock never came close however and ran up to where it is now.
