Amazon's price has practically been parabolic since 2008, and many bears have been crushed by bear trap after bear trap.
But this time, I think the bears may have it. But rewarded with just a short and sharp pullback, nothing too major.
I've used Elliott Wave Theory in this analysis here. Basically, the crux of my hypothesis is that we are currently at a Wave (III) top, and a Wave (IV) dip is imminent in the short term. However just to clarify, I am still bullish long term as a Wave (V) has yet to develop.
Looking at the chart below, it is quite rare for a Wave -v- forming inside of a major Wave (v) and (III), all aligning at the right Fibonacci projections, but thats what seems to be happening here. Wave (III) was also a super extended rally, and I expect it to continue in the long term with a Wave (V).
But as Wave (II) was a rather shallow 23.6% correction, it is expected that Wave (IV) will be deep, supported by the developments of the internal Wave -v- and (v).
Therefore, I have identified a projection cluster here for Amazon between 1630 - 1440 for the Wave (IV) down in the short term (3 months). Amazon's close price was 2734 yesterday (24th June), so the Wave (IV) decline could be pretty ugly in the short term (about -40%).
But this time, I think the bears may have it. But rewarded with just a short and sharp pullback, nothing too major.
I've used Elliott Wave Theory in this analysis here. Basically, the crux of my hypothesis is that we are currently at a Wave (III) top, and a Wave (IV) dip is imminent in the short term. However just to clarify, I am still bullish long term as a Wave (V) has yet to develop.
Looking at the chart below, it is quite rare for a Wave -v- forming inside of a major Wave (v) and (III), all aligning at the right Fibonacci projections, but thats what seems to be happening here. Wave (III) was also a super extended rally, and I expect it to continue in the long term with a Wave (V).
But as Wave (II) was a rather shallow 23.6% correction, it is expected that Wave (IV) will be deep, supported by the developments of the internal Wave -v- and (v).
Therefore, I have identified a projection cluster here for Amazon between 1630 - 1440 for the Wave (IV) down in the short term (3 months). Amazon's close price was 2734 yesterday (24th June), so the Wave (IV) decline could be pretty ugly in the short term (about -40%).
