The internal structure of AMZN hints at the development of a corrective trend. This formed a zigzag which consists of sub-waves a-b-c of the cycle degree. Perhaps at the end of last year, the market completed the formation of the first major wave a, which was a bullish 5-wave impulse.
After the end of the impulse growth, prices began to decline. This could indicate the beginning of the construction of a bearish correction b. It could take the form of a zigzag Ⓐ-Ⓑ-Ⓒ of the primary degree.
We will most likely see a decline in the final intermediate wave (5) of the leading diagonal Ⓐ to 77.07. At that level, wave (5) will be at 100% of previous impulse (3).
After the wave’s end, we expect stock price growth in the primary correction Ⓑ.
Let’s consider the second option, when the market has completed the formation of the primary wave Ⓐ. As in the first scenario, it has the form of a leading diagonal (1)-(2)-(3)-(4)-(5).
In this case, in the last section of the chart, we see a price increase within the sideways correction Ⓑ.
The correction wave Ⓑ will take the form of an intermediate double three (W)-(X)-(Y). Where the actionary wave (W) is also a double zigzag W-X-Y of a lesser degree.
Perhaps the second intervening wave (X) has also come to an end. Therefore, an upward movement in the final wave (Y) to a maximum of 146.85 is expected soon.
