After successfully following our pattern for almost 30 straight days, AMZN was completely derailed with the rest of the market by the uncertainty surrounding Evergrande. I'm thoroughly convinced that absent that factor, we would have seen a continuation of the previous trend on Sept 20, with a retest of the heavy resistance at 3525 and a breakout toward ATH. Now that the news of Evergrande has been assimilated into the market, it appears we should see a breakout of the megaphone pattern and be back on track for the continuation toward 3700+ by Sep 9. However, given the bearish sentiment in the market around October, I am no longer convinced AMZN will have time to test another ATH before a pullback during the month of Oct. Happy trading!
Comment:
*Apologies for the typo. Target date of Sep 9 should be Oct 9.