Amazon – Tick Insights

Amazon Com Stock Code AMZN.NAS

Outlook

Price tried to break above the cloud but was capped by the upper edge of the rising cloud as well as the Base line. Price also formed a Hanging Man candlestick price pattern, which is a warning of a price high and a likely reversal. The pullback in price was also capped by the Fibonacci 50% correction point of the decline from the high of $3552 to the recent low of $2870. Conversion line and Base line had a bearish crossover, confirming the bearish trend. Lagging Span is below price of 26 days ago but is above the cloud at the moment. MACD is bearish and there was a bearish divergence warning. If price is unable to move above the cloud, we are likely to a see a decline in price to the support at $2545 in a Fibonacci ABC correction move.

Strategy
$3175.00             Short Sell
$2545.00             Price Target
$3365.00             Risk Management Stop
3 weeks                Trade Duration

Amazon Com Stock Code AMZN.NAS

Outlook
Price closed below a recent support yesterday. Price had tested the lower edge of the cloud but was unable to move above the cloud. Conversion and Base lines also had a bearish crossover the day before and this could be the start of another possible decline over the coming weeks. When price make a new high at $2035, MACD was showing a divergence, warning of a potential price high. A strong decline validated the MACD divergence. When price tested the lower edge of the cloud, MACD was moving up together with price and similarly to price; MACD was unable to move above the zero line. MACD is now turning lower and a bearish crossover had already occurred.

Strategy
$1750.00 Short Sell
$1670.00 Price Target
$1810.00 Risk Management Stop
3 weeks Trade Duration

Caterpillar Inc Stock Code CAT.NYS

Outlook
Price made a low in late Aug 2019 and had climbed higher to $134. There was a pullback in price to $125.02 following the high. This pullback may have been completed. The pullback was into the cloud but managed to stay above the Base line. This pullback also managed to halt at the Fibonacci 38% of the rally from the low of $111.75 to the high of $134. There is a possibility of price moving lower to Fibonacci 50% at $122.87 to complete the correction process. However, a Thrusting Line candlestick pattern is hinting the correction process is over. If price stays above $125.02, it could be going higher. MACD is still bullish but is still moving lower in the bullish zone.

Strategy
$125.80              Buy
$134.80              Price Target
$122.10             Risk Management Stop
3 weeks             Trade Duration