Amazon Showing Signs of Strain, Calls for Caution

For the past five months or so Amazon (AMZN​) has been moving effectively sideways and consolidating near record highs. Given the developing chart pattern it is now at risk of falling into the biggest correction in over one-and-a-half years.

Let’s first look at the monthly chart below. Here we see that as of the July $1,083.31 record high Amazon had advanced 281.4% off its October 2014 low of $284. That high is in a long-term potential resistance zone identified by a confluence of Fibonacci ratio resistance levels. All are projections of prior monthly swings starting with the larger 261.8% extension of the 2006 low to January 2014 peak.

Given the developing chart pattern Amazon is at risk of falling into the biggest correction in over one-and-a-half years. …read more

Read more here: Amazon Showing Signs of Strain, Calls for Caution

Category: AMZN

Leave a Reply

%d bloggers like this: