Elliott Wave Analysis: Amazon May Start Another Extension Higher
Elliott Wave Forecast | Jul 24, 2018 01:46AM ET
Amazon (NASDAQ:AMZN) ticker symbol: $AMZN short-term Elliott wave impulse structure with sub-division of 5 waves structure in lesser degree Minor wave 1, 3 and 5.
Above from $1646.48 low, the rally to $1858.88 high ended Minor wave 1. The internals of that rally higher took place in another 5 waves impulse sequence in lesser degree cycles. The first leg of a rally to $1725 high ended Minute wave ((i)) as Leading diagonal structure. Then the pullback to $1682.15 low ended Minute wave ((ii)) pullback as a Zigzag correction. Up from there, the rally higher to $1841.95 ended Minute wave ((iii)) in 5 waves. Minute wave ((iv)) pullback ended at $1791 low, and Minute wave ((v)) of 1 ended at $1858.88 high.
Below from there, the stock did a 3 wave pullback in Minor wave 2, which is proposed to have completed the correction against $1646.48 cycle low. After reaching the blue box 100%-123.6% Fibonacci extension area at $1786.77-$1775.40. However, a break above $1858.88 high remains to be seen to validate this view & until then, a double correction lower in Minor wave 2 can’t be completely ruled out. Near-term, while dips remain above $1769.99 low and more importantly above $1646.88 low the stock is expected to resume the upside. We don’t like selling it.
Amazon 1 Hour Elliott Wave Chart
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