Elliott Wave View: Further Rally in Amazon (AMZN)

Since bottoming on December 24, 2018 low, Amazon (ticker: AMZN) has continued to recover. The sequence from December 2018 low remains incomplete with 100% extension coming at $2033 – $2143. In shorter cycle, we can see from the chart below that the pullback to $1818.90 ended wave 2. Wave 3 is in progress and subdivides as an impulse Elliott Wave structure. Up from $1818.90, rally to $1876.47 ended wave ((i)) with subdivision also as an impulse of lesser degree. Wave (i) of ((i)) ended at $1853.67, and wave (ii) of ((i)) ended at $1840.26. Wave (iii) of ((i)) ended at $1869.72, wave (iv) of ((i)) ended at $1852.50, and wave (v) of ((i)) ended at $1876.47.

The stock then pullback in wave ((ii)) and ended at $1845.28. Internal of wave ((ii)) unfolded as a zigzag where wave (a) ended at $1855.01, wave (b) ended at $1870.82, and wave (c) ended at $1845.28. Wave ((iii)) is in progress and Amazon can see 1 more leg higher to end wave ((iii)) before pulling back in wave ((iv)). Similar to wave ((i)), the internal of wave ((iii)) subdivides as an impulse structure in lesser degree. Wave (i) of ((iii)) ended at $1894.95, wave (ii) of ((iii)) ended at $1882.50, wave (iii) of ((iii))) ended at $1929.26, and wave (iv) of ((iii)) ended at $1916.59 and wave (v) of ((iii)) ended at $1933 peak. Below from there it is in wave ((iv)) pullback. The stock should continue to find support in 3, 7, or 11 swing as far as wave ((ii)) pivot at 1845.71 remains intact. We don’t like selling the stock.