Another simple trade set up for everyone again on this Monday morning, coming from Amazon (AMZN). Our trade today comes with the added benefit of having an extra confirmation built into the set up at hand. What do we mean by this?

Well, if you watch the video breakdown below, not only will you see that AMZN has formed a well-defined upward channel as it has climbed for the past several weeks, but it is also coming up to a pretty meaningful resistance level. In the short term, this could set us up for a short play as you look for price to reject off that resistance level.

This overhead level could mean there is a bit more of a pullback on the way as the stock attempts to push higher. That level of resistance is right above that 124 mark and as you see from this mornings price action, the stock has already reject off a level near there. The rejection this morning came at 124.8. Now, we will look to see if the stock can push higher or if this was the final straw that will initiate a larger pullback.

Bulls will want price to break and hold above this resistance level in order to resume the upward momentum trade. However, if price does reject off this level and go lower, you would get a good entry for a long trade after the price finds a local bottom after this reject. Either way, once again, patience is key.

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