Tough Call on Amazon
I'm going to guess Amazon (AMZN) will probably get the most attention after the bell. This can be a wild one around earnings, and the last two reports have not been kind to the bulls. Thursday's report is a tougher call. I do believe there will be volatility -- the stock has formed a rather wide wedge, but earnings are a perfect catalyst to either a breakout or a breakdown. The upside target looks to be in the $205-to-$207.50 area, and there's good probability for peaking above $210 on solid earnings.Amazon (AMZN) -- Daily Source: StockCharts.com View Chart » View in New Window »
The downside possibilities are a bit more precarious. I might be alone on this one, but the chart seems to show a head-and-shoulders pattern to go along with the wedge. In other words, a move below $187.50 would be like trying to put out a fire with gasoline. If the breakdown occurs, then I expect to see $177.50 tomorrow, with follow-through toward $167.50 over the next two weeks....361 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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