We are updating our expectations for Amazon.
In our previous analysis, we anticipated that Amazon was in a corrective phase, forming green wave 4, before making one last major run-up into yellow wave 1.
However, we have revised our perspective on this stock. We now believe that yellow wave 1 has already been completed and that Amazon is currently in the early stages of a long-term major correction.
This corrective phase will unfold as yellow wave 2. Within this wave, we have identified a Fibonacci retracement zone where we expect the market to form a historical bottom. This zone is defined at the following levels:
- 50% → $129.48
- 61.8% → $99.05
- 78.6% → $55.73
We expect this corrective phase to unfold as a three-wave structure labeled A, B, C (in orange). Currently, we anticipate that orange wave A has already been completed and that orange wave B is in its final movements. Once orange wave B is complete, we expect the market to enter a major sell-off, driving price into our defined Fibonacci retracement zone to form orange wave C — and with it, the completion of yellow wave 2.
With this in mind, this zone represents a significant long-term buying and accumulation opportunity for this stock.
Should any structural changes occur, we will update you immediately.
Kind regards,
Monalytics
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