AMZN 611.92 – neutral – Consolidates above key support area
AMZN rallied to a new record high at 619.45 (October 23, 2015) before consolidating. Overbought indicators warn of potential for further pullbacks. While the 580.57/579.00 key support area (July 24/ October 19, 2015 highs) holds the dips, there is scope for further upside through 619.45 to open new projection targets at 627.01 (1.382x (549.78-451.00) from 490.50), then 638.67. Above there would open the extension at 650.33 (as shown on the daily chart). Only a break below the 580.57/579.00 area would caution bulls.
Outlook:
Daily: neutral near term due to overbought condition
Weekly: bullish
AMZN rallied to a new record high at 619.45 (October 23, 2015) before consolidating. Overbought indicators warn of potential for further pullbacks. While the 580.57/579.00 key support area (July 24/ October 19, 2015 highs) holds the dips, there is scope for further upside through 619.45 to open new projection targets at 627.01 (1.382x (549.78-451.00) from 490.50), then 638.67. Above there would open the extension at 650.33 (as shown on the daily chart). Only a break below the 580.57/579.00 area would caution bulls.
Outlook:
Daily: neutral near term due to overbought condition
Weekly: bullish