AMZN: At The Level Of 83.88, We Could See A Price Reversal And The Beginning Of A Bullish Trend| FXMAG.COM

AMZN: At The Level Of 83.88, We Could See A Price Reversal And The Beginning Of A Bullish Trend - 1

AMZN seems to be forming a zigzag pattern consisting of cycle sub-waves a-b-c. Perhaps the market has completed the formation of the first major wave a, it is a bullish 5-wave impulse.

In the last section of the chart, we observe a decrease 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 â’¶-â’·-â’¸.

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 83.88. At that level, wave (5) will be at 200% of previous impulse (3).

After the end of the impulse wave â’¶, market participants may see the growth of stocks in the primary correction â’·.

AMZN: At The Level Of 83.88, We Could See A Price Reversal And The Beginning Of A Bullish Trend - 2

In an alternative scenario, it is assumed that the market has already completed the formation of the primary impulse wave â’¶.

In this case, if this option is confirmed, the stock price will start to rise within the bullish correction â’·.

It is assumed that the correction wave â’· 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.

Since the correction sub-waves in zigzags most often make up 50% of the previous impulse waves, therefore the entire primary wave â’· can end its pattern near 144.67.

An approximate scheme of possible future movement is shown on the chart.

Jing Ren

Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London. Later on he worked as a senior analyst within the FX brokerage industry where he developed strategies in trading and risk management. With solid understanding of market dynamics he founded Wensfer to offer research and asset management services.