Elliott Wave Analysis: Amazon Showing Impulse Rally

Jul 18, 2018

Hello Traders,

In this Elliott Wave Analysis, we will have a look at Amazon.

Short-term it is suggesting that the cycle from 6/25/2018 low ($1646.31) is rallying higher in an impulse structure. This suggests that the internal sub-division of each leg higher is unfolding as 5 waves structure of lesser degree i.e black wave ((i)), ((iii)) & ((v)), whereas wave ((ii)) & ((iv)) has subdivision of 3 corrective waves.

Up from $1646.31 low, a rally higher to $1725 high completed black wave ((i)) in 5 waves leading diagonal structure. Down from there, the 3 waves pullback to $1684.30 low ended black wave ((ii)) as zigzag structure. Above from there, the stock made another 5 waves advance which ended black wave ((iii)) at $1841.95 peak. Below from there, the pullback to $1791 low ended black wave ((iv)) in lesser degree 3 swings. Up from there black wave ((v)) remains in progress which is expected to unfold in another 5 waves structure.

Target for black wave ((v)) comes at $1868.58-$1887.15 ( black wave ((v))=((i)) ) area for the completion of cycle from 6/25/2018 low in red wave 1 or wave A. Afterwards, the stock is expected to do a pullback in red wave 2 or wave B in 3, 7 or 11 swings before further upside is seen provided the pivot from $1646.27 low stays intact. We don’t like selling it.