On March 12th I posted my first forecast for AMZN as it was going to touch the target of $381 on March 13th.
I think the downtrend for this has come to an end for the following reasons:
1. In the 2 hour chart on the left, Fibonacci extension for wave C end at $312.33. Today’s low of $313.13 is just few cents short of touching this.
2. If we count the sub waves for wave C, we can identify 5 waves down. I have labeled this in the chart on right in orange. In the 5th wave, we could identify 5 sub waves in it.
3. Today’s bounce from $313.13 to $321.33 has broken the down trend line.
4. In the half an hour chart as well as in the 2 hour chart, MACD indicates a divergence.
Even though all these factors indicate a bullish trend, I could still be wrong. So my stop loss is $312.
I think the downtrend for this has come to an end for the following reasons:
1. In the 2 hour chart on the left, Fibonacci extension for wave C end at $312.33. Today’s low of $313.13 is just few cents short of touching this.
2. If we count the sub waves for wave C, we can identify 5 waves down. I have labeled this in the chart on right in orange. In the 5th wave, we could identify 5 sub waves in it.
3. Today’s bounce from $313.13 to $321.33 has broken the down trend line.
4. In the half an hour chart as well as in the 2 hour chart, MACD indicates a divergence.
Even though all these factors indicate a bullish trend, I could still be wrong. So my stop loss is $312.