AMZN: The fifth wave is required to complete the primary impulse Ⓐ
|AMZN seems to be forming a zigzag that consists of sub-waves a-b-c of the cycle degree. Perhaps the market has completed the formation of the first major wave a, it is a bullish 5-wave impulse.
Since the end of last year, there has been a decline in the price, which may indicate the beginning of the construction of a bearish correction b. This correction can take the form of a zigzag Ⓐ-Ⓑ-Ⓒ.
Most likely, in the near future we will see a continuation of the depreciation of stocks in the final intermediate wave (5), which may end the primary impulse wave near 93.41. At that level, wave (5) will be at 76.4% of previous impulse (3).
After the end of the impulse wave Ⓐ, the stock is expected to rise in the primary correction Ⓑ.
Let's consider an option where the market has already completed the formation of the primary wave Ⓐ. According to this markup, the wave Ⓐ has the form of a leading diagonal (1)-(2)-(3)-(4)-(5).
In this case, in the last section of the chart, we see a price increase within the bullish correction Ⓑ.
It is assumed that the correction wave Ⓑ will take the form of an intermediate double zigzag (W)-(X)-(Y), where the actionary wave (W) is also a double zigzag W-X-Y of a lesser degree.
It is possible that the correction Ⓑ will be at 61.8% of wave Ⓐ. Thus, its completion is expected to reach the level of 154.91.
An approximate scheme of possible future movement is shown on the chart.
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