Amazon.com (AMZN) rose quickly on recent earnings, despite breaking even in the report ($0.01 gain per share). After a quick 20-point move upwards, it’s chopping slightly downward. Our previously-drawn descending trendline is now looking like a nice support level, so we’re watching closely to see how much lower AMZN will go. It it gets to the $225-$230 level it could be a nice opportunity to sell some premium in September, or perhaps a quick weekly spread.

It’s important to note that there was only a small gap in the earnings jump, and the current difference between the 20-day and 50-day simple moving averages isn’t out-of-line with previous levels, meaning there’s no immediate reason to assume prices will fall. We’re hesitant to get bullish because of the current price in comparison to the previous year (near annual highs) but that doesn’t mean that a neutral-to-bullish short-term trade is out of the question. Stay tuned.