Chart of the day

Where do we stand fundamentally?

Amazon (AMZN) has experienced significant financial growth in 2024, with its second-quarter revenue increasing by 10.1% year-over-year to $148 billion. Its net income surged nearly 100% to $13.48 billion. Looking ahead, analysts expect continued growth, projecting a 9.9% rise in revenue and a 20.6% increase in earnings per share (EPS) for Q3 2024. The stock has gained 49.2% over the past year, driven by strong results across its e-commerce, cloud computing (AWS), and AI investments

AMZN is testing 185 support. A bounce off this support will confirm that the ascending triangle uptrend consolidation is finished and that we will see an extension in the fifth wave. Invalidation of this immediate upside extension could come upon a break below 180.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is 145. As said this extension higher could lead to a 230 target in the medium-term to long-term if the AMZN holds the gains above 145.

_{Try a long trade entry with a narrow stop loss below 170 to target 230 and higher. Use call options to trade as well.}