Amazon approaching deeper wave four correction ahead of earnings [Video]

Gregor Horvat Wavetraders

Amazon is currently showing an impulsive retracement from the upper diagonal trend line, with a clear five-wave decline from the highs. This move can ideally represent wave A of a higher-degree ABC correction within wave 4, which could eventually bring the price back toward the open/unfilled gap area around the 213 level.

After the recent projected corrective recovery in wave B, Amazon may now be entering another decline within wave C toward the 213–200 support zone to complete the larger corrective structure.

Investors should also keep an eye on the upcoming earnings report scheduled for Thursday, July 30, which could have a significant impact on the short-term price action. Earnings volatility may either accelerate the ongoing corrective move or provide a catalyst for a stronger recovery.

As discussed previously, an ending diagonal is considered a significant reversal pattern, especially when it appears during the later stages of a larger bullish trend. Once completed, it is often followed by a sharp and aggressive reversal.

Highlights

Wave C appears to be in progress within a deeper higher-degree ABC correction during wave 4 consolidation.
Key support is seen around the 213 gap area, with additional support near the 200 level.
Earnings on July 30 could become a short-term catalyst for the next major move.
A break below 200 would increase the risk that a larger cycle top is already in place.
Ending diagonals are often followed by strong reversals after completion.

For a detailed view and more analysis like this ,you can watch below our latest recording of a live webinar streamed on July 28:

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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