3/6/2017 – Amazon (AMZN) Stock Chart Review
My last article for Amazon (AMZN) was several months back, it was titled "Amazon (AMZN) 11/15/2016 – Buy The Pullback?". In that article, I looked at 2 different bullish scenarios as well as 1 bearish outcome.
A Trendy Stock Charts member appears to have bought some shares before my previous AMZN article (congratulations!) and recently asked about any potential patterns for AMZN's share price that may be developing.
I think its probably best to review each of the scenarios that had the potential to develop in the previous article and see which of the 3 may be coming to fruition. Each of the 3 scenarios were longer-term scenarios. A check-up now should provide some additional clarity on the charts and narrow down the price projections....hopefully....
AMZN - Downside Risk
The section labeled downside risk in the previous article can be eliminated. That scenario did not play out. That means I should look for the results of either bullish scenario #1 or #2 to finish playing out.
AMZN - Bullish Scenario #1
This is a 5 year monthly chart for Amazon (AMZN). This chart best serves to update bullish scenario #1 from my previous Amazon article.
The confluence of Target Lines from the blue and black Fibonacci Extension Tools around the $900 area suggest some stiff resistance. I suggested a $900 - $925 upside price target in my previous update. Normally the confluence of Target Lines would be a good area to take some profits based on reaching the 161.8% Target Line from the black Fibonacci Extension Tool, which is the longer-term trend.
Sometimes you get a poke-through on the shorter-term trend. A poke-through on the shorter-term trend would be a quick break above the 100% Target Line from the blue Fibonacci Extension Tool. That is where the $925 price target comes into play. Expect stiff resistance around the $900 area though.
AMZN's share price did not close above the resistance area from the Dark Cloud Cover candlestick pattern in February 2017. It came really, really close. But the resistance area from the candlestick is $847.21; AMZN's share price closed February 2017 at $845.04, just slightly below the resistance area.
However AMZN's share price appears poised to move above the resistance area this month. The question now is, will its share price be able to close above the resistance area?….
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