Amazon a Broken Stock You Should Avoid, Says Pro
One of the best ways to determine the direction of a stock is to look at the chart. And top analyst Carter Worth says Amazon doesn’t look so hot.
”I’d stay away from Amazon ,” says Carter Worth. Technicals suggest this stock is topping out. “From Green Mountain to Netflix,” when a stock breaks trend, as Amazon has, it almost invariably it gets worse.
Also he says, Amazon “crashed down on epic volume” – and that’s a bad sign.
However Worth does see a few trends that he likes.
”Despite the sell-off Apple stock closed at its 150-day moving average,” Worth says. Although shares have declined , holding the 150-day is technically bullish.
”This is weakness I’d take advantage of. It does not look like it’s going to break trend.”
”Berkshire has spent a long time at its 150-day,” says Worth. “The 150-day will flatten in 2-weeks, that’s an important development.”
Worth is a buyer of Berkshire.
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Trader disclosure: On Nov 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour is long AAPL; Seymour is long BAC; Adami owns C; Adami owns GS; Adami owns INTC; Adami owns AGU; Adami owns NUE; Adami owns MSFT; Adami owns BTU; Kelly is long AAPL; Kelly is long GOOG; Kelly is long GLD; Kelly is long IBM; Kelly is long STD; Kelly is long CLF; Kelly is short Yen; Kelly is short Mexican Peso; Nations is long SPY; Nations is long call spreads AMZN; Nations is long S&P volatility
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CNBC.com with wires.