Elliott Wave analysis: AMZN resumes downtrend as wave five decline unfolds [Video]
|Amazon completes wave 4 bounce and turns lower toward Fibonacci downside targets.
Amazon (AMZN) has resumed its decline after completing a corrective bounce. The stock formed a three-swing recovery in red wave 4 following the earlier three-wave drop from the peak at 247.77. The bounce remained corrective and failed to change the bearish trend. After finishing wave 4, price turned lower again and started a new impulsive move. The decline is now progressing in wave 5 and is developing as a clear five-wave structure. This confirms sellers remain in control and the larger downside sequence continues.
In the near term, the current leg lower should extend toward the 1.236 external retracement of wave 4 near 192.96. This area represents the first downside target. However, the bearish momentum suggests the move can stretch further. The next potential objective stands near 187.17 if selling pressure continues. Rallies are expected to remain corrective and should fail below the wave 4 pivot. Therefore, buying at current levels is not recommended. The market still favors selling bounces while the structure stays bearish.
Overall, AMZN remains in a downward trend. The Elliott Wave structure supports additional weakness in the short term as wave 5 continues to unfold.
AMZN Elliott Wave [Video]
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