Let’s look at the charts to see how they might evolve in the coming weeks.
In AMZN’s weekly Japanese candlestick chart below, we can see a potential overshoot pattern dating back to mid-2020. The slope of the 40-week moving average line is negative.
The weekly OBV line has seen a slow decline from September 2020. The MACD oscillator is below the zero line after a long decline.
In this daily dot-and-digit chart from AMZN, below, we can see a potential downside price target of $2,635.
In this weekly Point and Figure chart from AMZN, below, we can see a price target of $4,870. If AMZN declines to the daily Point and Figure target of $2,635, this weekly chart will also be bearish.
Basic strategy: AMZN’s early investors were extremely successful, but successful investing is more about the future than the past. I would take a cautious or defensive approach to AMZN in the coming weeks. Even the most successful investments can encounter a speed bump from time to time.
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