Looking at Amazon, I feel like this stock provides some solid opportunities for swing trading. Amazon has been stuck in the following channel for several months. The price touch of a lower bound is always followed by an upward movement, while the touch of the upper trendline is always rejected. We can also see that the chart reacted to the previous maximum and the break was rejected. I, however, believe that this is only temporary.
It is obvious that the channel will be broken some time in the future, but until then, traders can easily follow it and profit from it. And if the bull market in the equities continues, it is much more probable that breaking of the channel will be upwards.
Looking at the chart of Facebook, we see a very different situation. Even if we saw the bounce from the support, we cannot surely say that the correction is over. Yet, I believe that we can say that the 302 dollars level will be held and that Facebook will not be trading below this price.
As of now, more likely scenario is the upward break of the trendline and “attack” on the ATH. I can only see two possibilities of how this will pan out. First one is a direct break of the ATH. The other one is one more bounce from the trendline resistance and a movement down to form a double bottom and from there the new ATH should come. I still see the strength in this market, but I would enter the market only once it breaks the trendline or if it goes as low as the support level.
Today we looked at two technology stocks, but each of them is in different shape. But their main direction is up. Each downward movement can be now seen only as a correction. As of now there is no reason to believe that these stocks could go into bear market any time soon, which means that each of the corrections might be considered as an opportunity to buy.