Amazon: Volatile!

The Amazon stock has shown significant volatility recently but managed to recover its temporary losses of over 7% just as quickly. We still position the stock within the turquoise wave 3, which should have additional upside potential. Once this high is established—something that may have already occurred—we anticipate a wave 4 pullback before wave 5 completes the larger magenta wave (3) further to the upside. As you can see in the daily chart, this magenta wave (3) acts as a subwave of the green wave [5], which in turn should lead to the peak of the even larger beige wave III. Following this, we expect a more pronounced wave IV correction before another round of impulsive rallies drives the stock to new highs.