The internal structure of AMZN hints at the development of a corrective trend. It is assumed that a zigzag is formed, which consists of sub-waves a-b-c of the cycle degree. Perhaps at the end of last year, the market completed the formation of the first major wave a, it is a bullish 5-wave impulse.
After the end of the impulse growth, the price began to decline, which may indicate the beginning of the construction of a bearish correction b. It may take the form of a zigzag â¶-â·-â¸ of the primary degree.
Most likely, in the near future we will see a continuation of the depreciation of stocks in the final intermediate wave (5) of the leading diagonal â¶ to 77.07. At that level, wave (5) will be at 100% of previous impulse (3).
After the end of the wave â¶, we expect the growth of stocks in the primary correction â·.
Let's consider the second option, when the market has completed the formation of the primary wave â¶, where, as in the first option, it 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 sideways correction â·.
It is assumed that the correction wave â· will take the form of an intermediate double three (W)-(X)-(Y), where the actionary wave (W) is also a double zigzag W-X-Y of a lesser degree.
Perhaps the second intervening wave (X) has also come to an end, so an upward movement in the final wave (Y) to a maximum of 146.85 is expected in the near future.