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