Some investors will unequivocally state Amazon.com, Inc. (NASDAQ:AMZN) is a buy. Others, to be sure, will beg to differ. Personally and given the Amazon stock price chart, this strategist says it’s the right time to put AMZN in your shopping cart. Let me explain.

For some investors with visions larger than mine, or maybe stronger opinions on the United States of Amazon, shares of AMZN are simply a buy. Wells Fargo’s recent bullish research note falls into that camp.

Analysts at Wells Fargo slapped a 12-month price target of $1,400 on Amazon, stock citing the company’s artificial intelligence and data analysis capabilities as primary drivers. But could there be a bump in the road on the way to delivering those type gains to investors?

One minor stumble for the tech giant is its move into Singapore.

According to Bloomberg, Amazon is faced with its share of challenges from the likes of Alibaba Group Holding Ltd (NYSE:BABA) and the possibility its business may not provide the same good fit for overseas consumers.

So is it a better time to shop or drop Amazon stock? Personally and based on the most recent price action, I believe it’s time to put AMZN in the shopping cart with the buy option ready to go, but for the right price of course.

Amazon Stock Weekly Chart

The Amazon stock chart reminds me there’s always a line somewhere. For some bullish traders, and bears too, that may have meant exiting or shorting shares two weeks ago as a long-standing uptrend channel “line” was broken. That’s denoted by the yellow oval highlight on the provided weekly chart of AMZN.

Unfortunately, that same worrisome incident winded up marking a low. In hindsight, the Amazon reversal formation can be defined as a bullish lower-low, double-bottom pattern of around five weeks in length.

Incidentally, the pattern found support off the 38% retracement “line” or level dating back to Amazon stock’s one-year post election low in mid-November. As noted, there’s always a line somewhere.

I’ll confess, my attention would have been initially focused on AMZN shares failing to hold the uptrend channel line, rather than a possible double-bottom variation successfully playing out. Nevertheless and looking forward, I do favor continued upside for Amazon stock given the failure on the part of bears.

One important caveat right now remains a picture-perfect pivot high of $1,000 from mid-September which is still intact. As much and given a decent rally in Amazon stock from the technical low, I’d wait for a daily chart breakout above the key numerical level for bullish positioning and why I think it’s the right time to put AMZN in the shopping cart.

Amazon Stock Moderately Bullish Long Butterfly

Despite our technical misread on Amazon stock in late September immediately in front of the “double bottom,” a proffered Oct $970/$980 bull call vertical has more than doubled in price from $3.40 to close at $7.15 Monday evening. Personally and as our thoughts above hint at, taking profits to reduce risk is stressed.

Reviewing the Amazon options board and if Amazon stock is able to clear $1000 in the next couple sessions, I’d favor using the October $1,010/$1,030/$1,050 call butterfly.

The short-term, low-cost and limited-risk position offers a nice size profitable range if shares should breakout and then proceed to move in a contained manner between the call strikes into October expiration.

Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits and feel free to click here to learn more about how to design better positions using options!