Eye on Amazon - Market Analysis for Feb 29th, 2012

The good news about yesterday's strong upmove in Amazon (AMZN) from 178.00 up through key "micro" resistance at 181.50, followed by a continuation to 184.00, is that the move exhibits very constructive (read: bullish) form.

If accurate, this suggests strongly that the Feb 27 low at 176.50 represents a significant coordinate within the larger base-like pattern that has developed since last November.

What next?

Amazon should hold the 181.50 area on any pullback weakness, ahead of a climb that confronts its near 5-month resistance line, now at 188.00, which must be hurdled and sustained to trigger meaningful upside continuation.

Conversely, inability of Amazon to hold 181.50-180.40 likely will result in a revisit of key support at 178.00-176.00.

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