Amazon.com, Inc. (AMZN): Zooming In On Bullish Trades

amazonCorey Rosenbloom: How do we trade a bullish stock that’s breaking out?

The easiest strategy is to buy pullbacks as price swings its way higher.

Let’s see an example of how to do this quickly via the recent breakout in Amazon (AMZN):

For a bit of background, take a moment to read my prior update:  “AMZN Bullish Breakout and Dominance Continue.

From that post, Amazon (AMZN) shares have continued their “bullish dominance” from the $660.00 breakout to the current high above $720.00 – with a current bullish swing possibly taking us even higher.

How do you jump into a surging bullish stock that’s breaking out?

Drop to a lower timeframe and trade the pullbacks or bullish opportunities as they present themselves.

I’m showing two specific Retracement Opportunities – “Bull Flags” or “Bullish Triangles” – that developed through May on the journey higher.

It’s very aggressive to trade immediately into a gapping stock, but safer to buy the pullbacks along the way.

The first opportunity triggered around May 9th when price retested the opening gap low (and rising 50 EMA on the Hourly Chart above).

We’d place a stop under $655 or $650 and play for a minimum target of the prior high into $690 – and preferably beyond.

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