One analyst, James Lee at Mizuho, said the firm “would be buyers on weakness” and on Wednesday institutions piled into Amazon options, with hundreds of bullish call contracts purchased within the last few hours of trading alone. Many of the traders choose a strike price of $3,400 or $3,500 and an expiry of Friday.

At 3:28 p.m. ET, one trader spent a total of $80,600 for 40 call contracts priced at $20.15 per piece with a strike price of $3,400 that expire on Friday. Considering there is such a short time before the calls expire time decay will happen quickly so the trader must have predicted Amazon would make a big bullish move on Thursday.

See Also: Amazon Seems To Be Digging Deeper Into Cryptocurrencies: What You Need To Know

The Amazon Chart: During the trading session prior to Amazon’s earnings print, the stock attempted to break up from the upper descending trendline of a pennant pattern but failed and closed the day underneath the level. Amazon has been trading in a pennant pattern since Sept. 9, bouncing up from the lower ascending trendline into a tightening range.

On Wednesday, Amazon printed a big bullish Marubozu candlestick on the daily chart, which indicated higher prices may come, and on Thursday, Amazon smashed through resistance at the $3,400 level and was attempting to break up from the pennant.

There is a gap above on Amazon’s chart between $3,549.99 and $3,580.01, which was left behind on July 30. Gaps on charts fill about 90% of the time so it is likely Amazon will trade back up into the range in the future.

Amazon is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish. On Thursday, Amazon tested all three moving averages as support and bounced.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial