Peter Smith
⬤ Amazon kicked off the week in a pretty tight range, with the stock holding steady around the $239 mark on the four-hour chart. Right now, AMZN is sitting inside a daily wedge pattern while also cooking up an inverse head-and-shoulders on the shorter timeframe. Both of these structures basically scream "compression" — the market is catching its breath before earnings hit on Thursday.
⬤ Zooming into the four-hour chart, you can see a clean series of higher lows building the right shoulder of that inverse head-and-shoulders setup, while the price stays boxed in by the wider wedge on the daily. Volume's been pretty even during this consolidation, and momentum indicators are just oscillating — no strong push in either direction yet.
⬤ Here's the thing — the daily wedge is narrowing after a solid run-up, which usually means a pause in the trend rather than a reversal. On the lower timeframe, that inverse head-and-shoulders tells us sellers are losing steam. Price keeps respecting support zones, so the technical picture stays intact heading into earnings.
⬤ With Amazon's weight in the market and a big earnings catalyst coming up Thursday, how AMZN plays out around these patterns could move sentiment across large-cap tech. This consolidation phase looks like it's building toward a decisive breakout — one way or the other — once the earnings card is flipped.
Peter Smith
