On 26 September, I posted an article on the 4 FANG stocks approaching support.In a development that could be interesting for technical traders they are now approaching resistance
I think the charts below speak for themselves. In all cases, I would prefer to wait for signs that price was beginning to reject resistance, rather than simply sell because it arrives at resistance. If resistance levels are rejected it could position for price to return towards support and a possibility that, this time around, support could be broken
The Amazon chart looks particularly interesting. If it peaks around the higher of the 2 dashed resistance lines it will set up for a possible complex head and shoulder. This is like a standard head and shoulder except there are 2 shoulders on either side.
The complex head and shoulder is not completed unless the neckline support is broken. One way of handling this situation is to sell with a stop above the right shoulder when it forms. The stop can then be tightened if price approaches the neck line guarding against the possibility that Amazon bounces off it yet again.
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