1. Amazon broke out of its long term compounding trend and mooned up to about $2000/sh. Fib retracements of 50% are not uncommon in price moves like this.
2. The average of the near term compounding trend with the long term compounding trend is displayed as the green parabola and is likely where the reversal back to new highs begins- if this forecast plays out.
3. In a bearish market environment the blue Elliot wave pattern finds itself playing catch-up to the long-term trend after a 61.3% retracement. In a bullish scenario the 50% should serve as concrete support and the purple Elliot wave pattern plays out.
4. Amazon is not only one of the strongest companies in the world, but also continues to deliver investments and results into growing segments. It is very possible that the time frame on this forecast in much shorter than presented and the 50% retracement is never touched. I personally would never short Amazon, but I would be an eager buyer at the 50% retracement and would hedge any current positions that are sustaining heavy losses.
2. The average of the near term compounding trend with the long term compounding trend is displayed as the green parabola and is likely where the reversal back to new highs begins- if this forecast plays out.
3. In a bearish market environment the blue Elliot wave pattern finds itself playing catch-up to the long-term trend after a 61.3% retracement. In a bullish scenario the 50% should serve as concrete support and the purple Elliot wave pattern plays out.
4. Amazon is not only one of the strongest companies in the world, but also continues to deliver investments and results into growing segments. It is very possible that the time frame on this forecast in much shorter than presented and the 50% retracement is never touched. I personally would never short Amazon, but I would be an eager buyer at the 50% retracement and would hedge any current positions that are sustaining heavy losses.