$AMZN Long Term Elliott Wave Update Aug 2, 2024 — right at .382 place to buy
### $AMZN Elliott Wave Long Term Update — August 2, 2024
Amazon (AMZN) has been navigating through a significant correction since reaching its peak of 201. This correction appears to be a classic Wave 4 pattern, aligning with the broader trend observed across major technology stocks, which are also experiencing similar Wave 4 corrections. Let’s delve into the details of this Elliott Wave analysis for Amazon and the broader market implications.
#### Wave 4 Correction Analysis
1. **Wave 4 Characteristics**: Wave 4 corrections typically represent a temporary pause in a longer-term uptrend. They are often complex and can take various forms, such as zigzags, flats, or triangles. For AMZN, the correction from the 201 high has unfolded in a manner that fits the profile of a Wave 4, marked by a significant pullback after an extended Wave 3 rally.
2. **.382 Retracement Level**: The .382 Fibonacci retracement level is a common target for Wave 4 corrections. For Amazon, this level is around 160–165. This retracement level has been a crucial area of support, indicating a potential bottom for the correction.
#### Sector-Wide Wave 4 Corrections
1. **Technology Sector Trends**: The broader technology sector, including the SOX (Semiconductor Index) and NASDAQ, has been experiencing similar Wave 4 corrections. The SOX is nearing completion of its .382 retracement in Wave 4, and the NASDAQ is also approaching its .382 target today. This synchronicity suggests a sector-wide correction phase, potentially setting the stage for a coordinated upward move.
2. **Implications for AMZN**: Amazon’s correction is part of a larger pattern observed across big tech stocks. As these stocks complete their Wave 4 corrections, there is a strong possibility of a collective rebound, driven by renewed investor confidence and favorable market conditions.
#### Buying Opportunity at 160–165
1. **Historical Reversal Patterns**: Historically, Amazon has demonstrated a tendency to reverse sharply following negative reactions to earnings reports. This pattern suggests that the current price range of 160–165 could represent a strategic buying opportunity, especially if the stock is perceived as oversold.
2. **Technical Support**: The .382 retracement level around 160–165 has proven to be a significant support zone. If this level holds, it could signal the end of the Wave 4 correction and the beginning of a new upward trend (Wave 5), potentially leading to new highs.
#### Market Sentiment and Outlook
1. **Earnings Reports**: Despite recent volatility, Amazon’s fundamental strength remains intact. As earnings season progresses, any negative reactions may provide short-term buying opportunities, especially if the stock is trading near key support levels.
2. **Long-Term Prospects**: In the long term, Amazon’s growth prospects remain robust, driven by its diverse business model, innovation, and market leadership. A successful completion of the Wave 4 correction could pave the way for a powerful Wave 5 rally, potentially exceeding previous highs.
3. **Broader Market Trends**: The alignment of Wave 4 corrections across major tech stocks and indices suggests a broader market reset. Once these corrections are complete, the stage may be set for a coordinated market rally, driven by improved sentiment and positive economic indicators.
#### Conclusion
Amazon’s current correction from its peak of 201 appears to be a textbook Wave 4 pattern, mirroring the broader trend seen in other major technology stocks. The .382 retracement level of 160–165 has emerged as a critical support zone, offering a potential buying opportunity for long-term investors.
With the broader technology sector and NASDAQ also nearing key retracement levels, the market may be on the cusp of a significant rebound. For Amazon, a successful hold above 160–165 could signal the end of the Wave 4 correction and the start of a new upward trend, potentially leading to new all-time highs.
Investors should closely monitor market developments, technical indicators, and earnings reports, as these factors will play a crucial role in determining the next phase of Amazon’s price movement.
