Amazon is now in the danger zone, for both longs and shorts. Here's why.
I have been recommending that you take profits on Amazon for about 15 points now. While it certainly hurts to take profits on a trade and then see the stock continue to go, if you want to minimize risk then you realistically should have taken profits when I first suggested it. For me, trading isn't so much about maximizing returns but about minimizing risk. I was thinking that Amazon could be a good short at this level given that it is now a full candle above the upper bollinger band. Given that it has consistently pulled back and hard from these levels, it could be a good short. But it's in the danger zone right now. I'll discuss more below.