Going into today I was long biased on AMZN. Yesterday it broke out of a downtrend and made new highs.
Today I used the 218.30-218.40 as an important pivot seeing that yesterday it couldn’t trade above .40 and it spent the majority of the afternoon consolidating up there. This morning we gapped up in the futures and caused AMZN to gap up as well. I was long if AMZN could hold above this level of previous resistance.
AMZN traded sharply lower through this level, and I was out of my long position. My bias had to switch to look for a safe short entry. AMZN retraced back up to .33 and .35 again and provided great short entries around 10 and 10:03. The white line above shows this level and the arrows show points of resistance from yesterday and the short entry from today.