The S.A.M. AI Scanner caught my attention with a fresh daily squeeze forming in AMZN. This compression of Bollinger Bands inside the Keltner Channel suggests significant energy building for the next move. When we see this kind of setup near highs, rather than signaling exhaustion, it often indicates a continuation pattern is forming. The institutional accumulation typically shows up in these compression periods before the next leg higher. Stacked EMAs The technical structure here is particularly compelling with the EMA setup: - Daily chart showing perfect EMA stack (8, 21, 34, 55)
- Weekly chart confirming broader uptrend with aligned EMAs
- Price action respecting these moving averages as support
- Higher lows forming on multiple timeframes
This kind of clean technical structure often precedes significant moves higher, especially when combined with our squeeze setup. Momentum Analysis What makes this setup particularly powerful is the combination of: - Fresh daily squeeze developing
- Multiple timeframe EMA alignment
- Strong relative strength compared to broader market
- Institutional buying patterns visible in volume profile
When these factors align near historical highs, it often signals that larger players are positioning for the next leg higher. Business Overview While the technical setup is our primary focus, it's worth noting that Amazon continues to demonstrate strength across multiple revenue streams. The company's diversification across e-commerce, cloud computing (AWS), and advertising provides multiple growth catalysts heading into 2025. Key Catalysts - Expanding advertising revenue projected to surpass $100B by 2026
- AWS maintaining cloud market leadership
- Potential dividend initiation in 2025
- Expected interest rate cuts supporting growth initiatives
Your Action Plan Trade Thesis: - Fresh daily squeeze suggesting imminent momentum move
- Stacked EMAs providing multiple support levels
- Strong relative strength indicating institutional accumulation
- Clear technical structure to trade against
Next Steps: - Watching for entry signals this week
- Planning to use call options to define risk
- Looking for continuation pattern to develop post-squeeze
Risk Management: - Primary stop below the 21 EMA on daily
- Secondary support at the 34 EMA
- Position sizing aligned with these technical levels
If you're in Profit Surge Trader, you'll receive real-time alerts as soon as I enter this trade, along with every management decision that follows. Overall, this setup combines everything we look for in a momentum trade: clear technical structure, multiple timeframe confirmation, and a fresh squeeze developing near highs. Want to see exactly how I trade? Click here to join me in Profit Surge Trader where I break down every entry, exit, and management decision in real-time. |
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