Monday, January 6, 2025

Tech Giant Shows Fresh Momentum into 2025

Trade of the Day Wake-Up Watchlist

"Show me stacked EMAs and a fresh squeeze on a momentum stock, and I'll show you my favorite setup for explosive moves. AMZN is giving us exactly that right now."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

If it's not broke… don't fix it.

So, while it's a new year, I'm going to continue focusing on the same setups that helped me become a seven-figure trader. And that's trading momentum stocks when they are paused and ready for the next move.

Which is exactly what I'm seeing on Amazon (AMZN) right now.

Despite trading near its 52-week highs, AMZN is showing signs of coiling up for its next move higher. And while some traders might shy away from stocks near their highs, I've learned that strong stocks tend to get stronger – especially when the technical setup is this clean.

The S.A.M. AI Scanner is showing me exactly what I want to see: a fresh daily squeeze forming with perfectly stacked EMAs across multiple timeframes. This is the kind of setup that regularly delivers the explosive moves I look for in my trading.

 

Squeeze Dynamics

Could This Pattern Signal Your Next Big Trade?

Over 30 stocks are forming the Triple Bull Sequence - the same pattern that's historically predicted gains up to 718%. Click for urgent details.

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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