AMZN Day Trade Long Setup Possible. Needs to retrace more.

Jul 8, 2014

I am watching AMZN for a potential day trade long. Waiting for my particular setup to validate, I have projected significant support between 315.12 and 319.90 area. This coincides with a 38.2% measurement of the broader price structure. Since my outlook is very short term, fundamentals are not something I consider for this type of trade. Since this trade has not confirmed, I cannot determine a precise stop. I can say that if this stock is going to stay strong, it should not close below 315 on an hourly chart. This price can serve as a good reference point to define risk from. As far as targets, I am considering the 323 area at a conservative target and 328 as a more aggressive target (this can take more than a day to reach).

Remember I am looking to get long somewhere within the support zone. It all depends if price retraces into that zone and then validates.