Amazon Stock Analysis: Does the Long-Term Uptrend Still Have More Room?

AI-generated source summary

The analysis focuses on Amazon (AMZN) using a long-term monthly chart. The price is observed to be within a long-term rising channel, indicating a sustained bullish trend since approximately 2008. This overall upward trajectory is interpreted through Elliott Wave theory, suggesting that the current wave (wave 3) is nearing completion, with the sub-waves labeled I through V. Following the completion of wave 3, a corrective wave (wave 4) is anticipated, potentially moving downwards towards a support level around $200. This level is considered significant as it coincides with a previous major support area. If price breaks below $200, the entire structure would need re-evaluation. The analysis also notes a recent daily gap between $240 and $260, which has been partially filled, and suggests that price may continue higher after this correction to make new highs. A projected target for the next upward wave (wave 5) is not explicitly given but implied to be significantly higher, potentially reaching $550 or more, given the broad nature of the previous waves. The failure point for the bullish outlook is established at $200, below which the bullish case would be invalidated.

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