Don’t You Dare this Amazon – but I would not have looked at the chart if it was not all over the news for the new record in price. Now if something is being watched so closely that it does not get missed by all the media it must carry a lot of emotion with it. The chart from the 2015 low marks as a 5 wave rise, where 3<1, and so 5<1 must also be true. The move up yesterday kissed the trendline from the wave 1 and 3 tops. So is wave 5 over. The weekly chart shows us to be in wave v of 5, so this is the final wave in the structure so far. So watch the next turn lower in Amazon closely as it can mark the end of a 5 wave rise and a correction. But that has not yet happened but we could be close.
Even on a Quarterly chart from 2001 it can look like this. Wave 5 of 5 up in progress.
Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd