Amazon to Challenge Support as Major Correction Continues

09/18/2020 10:01 am EST

Focus: TECHNICAL

Michael Paulenoff

Founder, MPTrader.com

A few weeks ago, I posted a long-term Amazon (AMZN) chart for members showing the prospects for a measured swing move of 1765 points off the January 2015 low at 285.25. This swing move projected to a 2020 high in the vicinity of 3388, states Mike Paulenoff.

As it turns out, AMZN peaked on September 2 at 3552.25, or 1929 points above the March 2020 major pivot low at 1623. This was a 9% overshoot prior to our expected significant downside reversal that has pressed AMZN from 3552.25 (Sep 2) to today's low at 2962.00 so far (-16%).

The multi-year measured swing move followed by a major downside reversal is no coincidence IMO, and argues that, indeed, AMZN is in the grasp of a MAJOR CORRECTION that is heading directly for a challenge of support at 2900-2888, and if violated, to a Fibonacci target window of 2590 to 2360 prior to completion.

amzn

Mike Paulenoff is co-founder of MPTrader.com, a live trading room featuring his analysis on the key key market indices and bellwether stocks & ETFs.

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