As always, we like to keep it clean and simple, with technicals and analysis that's easy to see and understand. Let's get into it:
AMZN could see a modest correction this December. It's at an all time high, and well into two Wave 5 sequences on the 4h, with R1 (RevAlerts Essential Indicator) showing a blip on the charting radar. It's also overbought on an least two oscillators.
We see a 5%+ correction to the $215 price range in the coming 3-4 days.
SUPPORTING OBSERVATIONS:
Recent Rapid Stock Appreciation:
AMZN has seen a significant rise, gaining 14.1% since November 29, 2024. Such swift increases can lead to overvaluation, prompting investors to take profits, supporting the reversal to $215.
Seasonal Competitive Pressures:
Ho ho ho. The holiday season intensifies competition, often leading to increased discounting and promotional activities. This can compress profit margins, potentially impacting Amazon's financial performance and investor sentiment.
Investment in New Ventures:
Amazon's substantial investment in initiatives like Project Kuiper, its satellite internet project, involves significant capital expenditure. While promising long-term, these ventures may pressure short-term profitability, causing some investors to reassess their positions.
Be alert.
Trade green.
We gleaned knowledge from:
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