$AMZN Elliott Wave Update Aug 7 — Wave 2 support

Ted Wavegenius Aguhob
3 min readAug 7, 2024

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### $AMZN Elliott Wave Update Aug 7

Amazon Inc. ($AMZN) has been displaying interesting wave patterns that align well with Elliott Wave theory, providing potential trading opportunities for those closely monitoring its movements. After a notable Wave 1 advance, the stock is now in a corrective Wave 2 phase, which is critical for setting up the next significant move.

#### Recent Wave Movements

1. **Wave 1 Rally**:
— Amazon saw a strong Wave 1 move, advancing from a low of 155 to a high of 168. This rally indicates bullish sentiment and suggests that investors are optimistic about Amazon’s near-term prospects.

2. **Wave 2 Correction**:
— Currently, Amazon is in a Wave 2 correction phase. This phase typically retraces a portion of the gains made during Wave 1. For $AMZN, the correction is expected to find support around the .618 Fibonacci retracement level at approximately 161.
— The .618 Fibonacci retracement level is often a strong support area in corrective phases, indicating where the stock might bottom out before resuming its upward trend.

#### Key Levels to Watch

For Amazon to confirm the beginning of Wave 3 and continue its upward trajectory, several critical price levels need to be closely monitored:

1. **Support at 161**:
— Amazon needs to hold the 161 level, which corresponds to the .618 Fibonacci retracement of the Wave 1 rally. This level acts as crucial support, and maintaining it is essential for the bullish outlook to remain intact.

2. **Resistance at 166**:
— To set up for Wave 3, Amazon must break above the 166 level, representing the previous high before the correction. Breaking this resistance is a strong indication that the correction has ended and the next impulsive move is starting.

#### Wave 3 Projections

Assuming Amazon holds the 161 support and successfully breaks above the 166 resistance, it would set the stage for a robust Wave 3. In Elliott Wave theory, Wave 3 is often the most powerful and extended of the impulse waves, frequently targeting 1.618 times the length of Wave 1.

1. **Potential Targets for Wave 3**:
— Based on the length of Wave 1 (155 to 168), the projected target for Wave 3 could be as high as 175 to 180. This projection is derived from the 1.618 Fibonacci extension, which is a common target in Wave 3 scenarios.

#### Market Sentiment and Implications

The recent Wave 1 rally in Amazon reflects strong bullish momentum. However, the ongoing correction phase in Wave 2 requires careful observation. Holding the 161 support level is crucial for maintaining the bullish scenario, while breaking above 166 would confirm the continuation of the upward trend.

Market sentiment around Amazon remains cautiously optimistic, with investors paying close attention to broader market trends, sector performance, and specific news related to Amazon. These factors, combined with the key technical levels outlined above, will play a significant role in determining the stock’s future movements.

#### Conclusion

Amazon is currently in a Wave 2 correction, with crucial support at the .618 Fibonacci retracement level of 161. For the bullish scenario to unfold, Amazon must hold this support and break above the 166 resistance, setting the stage for a potential Wave 3 rally targeting 175 to 180.

Monitoring these key levels and market sentiment will be essential for navigating Amazon’s price movements in the coming days. The next few trading sessions will likely provide critical insights into whether the bullish scenario unfolds as anticipated, offering significant trading opportunities for those closely watching the stock.

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Ted Wavegenius Aguhob

Broke 33rd degree WD Gann trading record — Karaoke King! The World’s #1 Elliottician - Music/Markets https://wavegenius.com https://tinyurl.com/wavegeniusebook