amazoncom inc amzn was down about 2 on thursday morning at the lower trend line of a rising channel pattern the pattern is bullish for the short term but can be bearish down the road for bullish traders the trend is your friend until its not and the stock is likely to continue upwards aggressive traders may decide to buy the stock at the lower trend line and exit the trade at the upper trend line bearish traders will want to watch for a downward break from the lower ascending trend line on high volume for an entry when a stock breaks down from a rising channel its a powerful reversal signal and indicates a downturn is likely in the cards it should be noted that during market bull cycles stocks can break up bullishly from rising channels if amazon eventually breaks down from the pattern volatility in the stock market could increase due to the stock being heavily weighted within the spdr sp 500 traders wishing to play the potential volatility in the stock market can use miax’s spikes volatility products the products which are traded on spikes volatility index spike track expected volatility in the spy over the next 30 days want direct analysis find me in the bz pro lounge click here for a free trial the amazon chart amazon has been trading in the pattern since may 31 but since june 23 the stock has found resistance near 131 and had been trading mostly sideways within the channel the sideways consolidation took place on decreasing volume which suggested a larger move could be on the horizon   bullish traders want to see big bullish volume come in and break amazon up through 131 which would likely bring the stock to at least the upper trend line of the channel if that happens bullish traders want to see continued bullish momentum cause amazon to break through the channel   bearish traders want to see big bearish volume come in and knock amazon down under the lower ascending trend line of the channel and then for bearish momentum to come in and cause amazon to lose support at the 21day exponential moving average   amazon has resistance above at 131 and 13683 and support below at 12593 and 11716 read next top stories thursday july 6a samsung electronics expects lowest quarterly profits in 14 years exxon anticipates lower natural gas prices  refining margins to hit profits bank of america boosts dividend after stress test