AMZN broke lower within its parallel channel; further downside toward $239.22 creates a potential buy setup.

First off with Amazon. You can see here Amazon today unfortunately put in a very significant close. It closed in the lower 50% of this parallel channel.

Now I remind you for any other new viewers this parallel dates all the way back here to January of 2023. We've navigated to the up to the bottom and back and forth all remaining within this inclining parallel channel.

Now, as I uh stated today, you can see price action dropped, closed in the lower range of this 50%, an area in which price had been trying to hold ever since price got close to it here on August 27th.

Breached but never confirmed with a continuing move down lower. Instead, tried to remain above and then now is moving right back down on the chart.

We'll watch closely tomorrow for a move lower under today's low. If so, that should kick off kick off some more selling, which then could lead us to a buying opportunity here on the chart of Amazon.

And you may say, "All right, well, where's that level, Drew?" All right, so grab that fib tool. Let's go to the most recent pivot low. I'm going to take it up to the pivot high.

And voila, right there. 786 fib retrace, $23,922.

If we get some continued selling pressure down here on the chart, that would come right into contact with this inclining trend line creating a two-factor level of support that increases the odds of a chance for a potential bounce.

Now, Amazon would have to see some significant selling to get down to that level. But just keep this trend line drawn as if that can line up with another level of gap fill support.

That two can be a two-factor level for at least an intraday bounce.

Say we get a bounce here and price comes down into the 245 region right on that inclining trend line. That two factor level of support should give you some profits at least intraday if not could propel the stock all the way back up to this 50% area of the parallel channel.