Fibonacci Setup In AMZN Pays Off

In mid-January we had a nice setup in AMZN.  It was not the highest probability setup at the time, but it ended up playing out nicely so far.  

The setup zone came in at the 215.88-216.67 area and included two key symmetry projections and a 1.272 extension of another swing.  It could be considered a symmetry setup since it included symmetry or a price cluster and the minimum of three price relationships.

Bottom line is AMZN tested support on January 14th and held.  After price held above that zone, a 15- or 30-min chart with the 8/34 ema crossover to the upside was considered a signal for entry.  The definition of risk when the market triggered was either below the low made on January 14th at 216.20 or below the low end of the cluster at the 215.88 area.

So far we have seen a rally of $20.20 from the January 14th low, and are just short of target #1 at 237.57.

Now, due to the fact that we have time resistance to this current rally I'm suggesting anyone in this trade trails up stops just in case the time resistance kicks in.  You can use a trailing stop if you like and let that take you out of the trade.