Amazon (AMZN): Preparing for a Correction

2024年6月21日

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.

2024年9月18日

註釋

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