Amazon has no support, and looks unable to regain position in this wedge. I would not be surprised to see a fake breakout to the upside before the inevitable drop.
You're right that it's lost the wedge trend, but it still has plenty of horizontal support levels (which is stronger than trend support in my experience). I really don't see downside to $2,500 unless there is a tech correction or terrible earnings (possible / unlikely respectively). This chart has no information for either, so I think more likely we're going to be ranging between $3,000 -> $3,300 until a market event (watch TNX). That's my take anyways, to offer a contrarian view. Take it or leave it! Good luck out there!
el7120
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The only way amazon would retest those levels is if earnings were terrible which is not the case. We hit a double bottom and bounced. This was the support. If it broke that we would have been in major trouble.
Is that really the only way it would retest? A miss on earnings?
Nothing about regulatory concerns, compliance concerns, increased tax rates, low free cash flow growth due to previous investments, potential logistical failures in countries of expansion
I think Amazon looks expensive, and right now it is sitting on a candlestick save.
Cheers
zachholt
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With that said I do think it regains the wedge and follows the broader market in a melt up before falling.
Charts like these, what a lot of people never factor in.. a huge percentage of holders have never taken profits. If they start to see their unrealized gains being erased it can start a chain reaction.