Same overbot conditions, rising wedge, negative divergence and overall look as Apple charts. Smack down setting up now.
AMZN Weekly Chart Negative Divergence:
Amazon charts showing the same overbot conditions, rising wedge and negative divergence characteristics as the Apple charts, no doubt receiving recent buoyancy as traders throw money at large cap tech boosting the overall broad markets. The latest thrust helped by news on Kindle offerings and other ideas in the pipeline but do not hang your hat on those fundamental items. The chart is nasty.
You can see each negative divergence slap down; spring 2010, February 2011, the August crash and now..... Note volume trailing off for this recent up move showing lack of any conviction, more than likely the big boys distributing shares to Joe Sucka as he gets caught up in the hype. Projection is sideways to sideways down for the weeks and months ahead. Price would immediately be more comfortable in the 200-205 area for starters, also a juicy gap fill. The recent momo move has such power that sometimes price needs to stutter at the top with some potential M top action, but the writing is on the wall, the negative divergence will smack her down. Be wary of all this recent Apple and Amazon hype.
For AMZN chart use search box above for keystone speculator.