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Monday, October 26, 2009

Amazon Targets

I show Amazon as a possible thrust up out of an ascending triangle. That could indicate an exhaustion gap up that will reverse soon enough. I wouldn't necessarily count on it though. However it would explain a reversal. If it traces sideways and consolidates for a while, it would probably be a wave 4. How much support is above here and for how long it lasts is anyone's guess.

The price highs of waves (1) (3) and (5) typically connect on a channel line in an EW pattern. The price lows of a (2) and (4) wave should also connect in the same parallel channel. My first chart may have nailed that channel.

Amazon is not an easy read, but my charts look nice. Both charts together show 2 separate lines that, if hit, will have fulfilled 2 converging targets. That makes for a powerful target.

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