Amazon (AMZN): Preparing for a Correction

2024년 6월 21일

We need to zoom out significantly to get a clearer picture of Amazon. The stock has been in a maximal zone between $177 and $214. For the past three months, it has been ranging between $177 and $188, at the top of Wave B.

Current Situation:

• Elliott Wave Analysis: We believe a substantial drop is necessary to complete the overarching Wave (2). The parallel trend channel that was broken with the completion of Wave 5 should be revisited to finalize Wave (2). This would be a textbook Elliott Wave behavior - breakout of a trend channel to complete the wave 5 as a fakeout and a deeper correction to flush some participants out of the market and into slight panic mode.
  

• Target Range: We are targeting a range between $131 and $103 as a likely zone for this correction to end.
  

• Ranging Behavior: Amazon has been ranging for three months, indicating consolidation before a potential move.
  

Strategy:

• Observation Mode: We are currently observing the stock for signs of weakness.
  

• Limit Order: A limit order will be considered if the stock begins to show significant downside momentum. If and when we decide to place a limit order, we will issue a detailed market report.
  

Amazon's current range suggests consolidation, but we expect a deeper correction to complete Wave (2) rather than a breakout to the upside. We are monitoring for signs of weakness and will place a limit order if conditions are met. For now, there is no immediate need to place an order. Further updates will be provided as the situation evolves.

2024년 9월 18일

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You can find an update on our analysis following this link: