Amazon Rally or Crash: Decision Point Approaching!For Amazon, we're currently at a critical juncture with two potential scenarios:
Scenario 1 - Uptrend: This scenario suggests that Amazon has completed a five-wave cycle, finishing Wave I in September 2020, and concluded the corrective phase (Wave II) by December 2022. If this is the case, we're now in Wave III, indicated by a five-wave impulse upwards, comprising a higher Wave (1) followed by a corrective Wave (2). This scenario implies that after hitting a low at $81.43, the stock is in an uptrend. The maximum extension for this uptrend, or red Wave 5, leading to a higher Wave (1), is targeted at $181.
Scenario 2 - Ongoing Correction: Alternatively, it's posited that the overarching Wave II hasn't finished yet, and only a Wave (A) of the correction has been completed so far. Here, we anticipate the formation of Wave (B) shortly, to be followed by a Wave (C). The exact target of Wave (C) would depend on where Wave (B) concludes. For this scenario, the benchmarks for a potential Expanded Flat correction range between $177 (100% extension) and $214 (138% extension). Surpassing these values would negate the scenario of an incomplete Wave II, confirming that we are in Wave III.
The current chart patterns lean more towards the first scenario, indicating an uptrend and the end of Wave II at $81.43. The critical levels are thus set at $181 for confirming the uptrend, and between $177 to $214 for the alternate scenario. Breaking through these levels would clarify which phase Amazon is currently in.
