Chart of the day

Where do we stand fundamentally?

Amazon continues to develop custom silicon chips for its AI and cloud services, positioning itself to compete with other hyperscalers in the generative AI market. The company is also working with startups like Anthropic to build next-generation AI systems, further establishing itself as a major player in this space.

Amazon's recent momentum highlights its dual focus on retail growth and technological innovation, which are core to its long-term strategy.

AMZN is reaching the possible top of a short-term fifth wave of the long-term upside fifth wave after the recent violent reversal from 230. An extension upside from here in the case of a break above 230 can lead to a test of the 260 level in the extended fifth upside wave.

I would be careful here with the long trades and would take some profit if you are already long or traded with options. Look for any signs of aswing reversal lower for the short trades or put options.

_{Try a short trade entry with a stop loss above 230 to target 200 and lower. Trade it with a put option as well.}