But like the rest of the market, Amazon has since ricocheted off of those lows and now sits at around $1,626. A bounce that, according to Worth, is not built to last.
“The ricochet is essentially a 50 percent retracement. We dropped about $745, we’re up $372 … it’s essentially right back to the midpoint,” said Worth. “But what’s important is it’s basically stuck, it’s stalled at that retracement level, and so … what you can see very clearly is this tight, tight consolidation, and that typically happens before a big bet.”
Since bouncing back up to the current retracement levels, the stock has fluctuated within roughly a 5 percent range. That sudden hitting of the brakes by traders ahead of earnings seems to signal an end – at least for Amazon – to the bullish breakout that kicked off 2019. But Amazon’s earnings results could push the stock in either direction, and the big bet that Worth sees coming could go either way, too.