Amazon reacting higher from Elliott Wave blue box area
|In this technical blog, we are going to take a look at the past performance of 4 hour Elliott Wave Charts of Amazon ticker symbol: $AMZN, which we presented to members. In which, the rally from 16 March 2020 lows, showed the higher high sequence in an impulse structure favored more strength to take place. Also, the right side tag pointed higher & favored more strength. Therefore, we advised our members to buy the dips in Amazon in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:
Amazon 4 Hour Elliott Wave Chart
Above is the Amazon 4 hour Elliott Wave Chart from 9/14/2020 update. In which, the rally from 16 March 2020 low unfolded as 5 waves impulse structure where wave (1) ended at $2475 high. Wave (2) ended at $2245 low, wave (3) ended at $3344 high, wave (4) ended at $2888 low. Up from there, wave (5) ended at $3552.25 high and ended the cycle from March lows. Down from there, the stock made a 3 pullback to correct the cycle from 16 March 2020 low. The internals of that pullback unfolded as a double three structure where wave (W) ended at $3111.13 low. Wave (X) bounce ended at $3349.89 high and wave (Y) was expected to reach $2902.14- $2626.03 100%-161.8% Fibonacci extension area of (W)-(X). Before providing a buying opportunity looking for more upside or for 3 wave reaction higher at least.
Amazon 4 Hour Elliott Wave Chart
Here’s 4 hour Elliott Wave Chart from 9/22/2020 update, in which the stock managed to reach the blue box area at $2902.14- $2626.03 & showing reaction higher taking place from the blue box area. Allowed members to create a risk-free position shortly after taking the longs at the blue box area. However, a break above $3552.25 high still needed to confirm the next extension higher & avoid double correction lower.
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