Cracks Forming in Amazon! (AMZN)

Hi friends! Welcome to this update analysis on AMAZON! Let's get right to it! Looking at the weekly chart for AMZN, we can see that since the all time high, the stock has been in a technical downtrend, forming lower highs and lower lows. Additionally, the stock appears to be in the process of forming a head and shoulders pattern. There is a clearly defined left shoulder, a head, and a right shoulder in the process. If we look inside of the right shoulder, you can see that the price is currently at a critical area. AMZN is right on top of the 23.6% retrace, and the 200 EMA (in purple) is just above. In fact, AMZN has fallen below the 200 EMA during today's session. If AMZN closes this session below the 200 EMA, there will be a good chance that we could see a completion of the right shoulder soon. That would take AMZN down to the low 1500s. Interestingly, there is a rising support level that is converging with the neckline in the right shoulder. So, if AMZN takes out the neckline and that rising support level simultaneously, it could generate some powerful technical selling. For now, let's watch to see if AMZN can close below the 200 EMA, to continue completing the right shoulder of this potential head and shoulders pattern.

I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-JD-