I talked about the 'Hikkake' or 'Inside bar breakout failure' trade in my weekly blog last time. While the information is still fresh, trader UC spotted a possible scenario that can play out. I like to plan out trades this way and as the price comes to you - we are there to react and execute.
Here is an $AMZN Trade idea.
Most of the monthly bars that closed last week were inside bars. That makes coming few weeks important in terms of finding out whether we continue the recovery mode since mid-March OR if market starts to drift sideways to down. Whatever the case may be, as traders we should plan for both sides and be ready to follow the price. No room for predictions. Nobody knows where the stock prices will go. Therefore learn price action as that is the best measure of how traders are acting in any given period of time.
Few Stock charts to keep an eye for this coming week....
The daily chart shows a nice Inverse H&S breakout with a decent follow through. It has been flagging since the past two weeks and bounced nicely from the breakout level. The past two sessions held the price nicely but could not get past $430. Keep an eye on that price level to trade the long side. $445 can be a nice target for the first leg up.
Nice healthy up trend. 157.5 area provided support multiple times last week. Friday was an inside bar. A possible trade could be either a pull back followed by a Bullish Hiikkake trade. If it breaks to the downside, next sold support is at a psychological $150 level. 50 day moving average can provide support as well.