Amazon (AMZN) Chart – 4/15/09

I charted Amazon (AMZN) premarket on April 15, 2009 after AMZN closed at $77.22 yesterday.

• AMZN is at the top of its trading channel near its trend line of higher highs
• AMZN held support on on its 10 day moving average yesterday
• Based on premarket prices, AMZN  is heading towards its 20 day moving average
• Williams %R for the 14 day indicator broke from overbought yesterday

Opinion = AMZN is losing momentum and is due for a move closer to its trend line of higher lows if the 20 day moving average doesn’t hold.  Support could come from its 50 day moving average and/or from its two horizontal lines I drew that mark previous short term bottoms.  The lower of those two is about to connect and that’s where I think AMZN is heading, not too far below $67.00.  I’m waiting to buy in, but not so confident yet that I’m shorting AMZN at these prices.