Usman Salis
Amazon (AMZN) shares have continued their impressive rally, and the technical picture suggests there may be more upside ahead. The stock is displaying a textbook impulsive structure that points to further gains, with recent weakness appearing to be nothing more than a temporary pause in the broader uptrend.
Elliott Wave Structure Points to Continuation
According to a recent pre-market analysis from Elliottwave Forecast, Amazon is forming a clean five-wave impulse on the 45-minute chart.
The current move is in its third wave, followed by the fourth wave - an A-B-C corrective pattern that should set up the next rally. This pullback represents healthy price action, not a reversal.
The forecast suggests:
- Wave (a) bottomed near $247
- Wave (b) heading toward $252–$255
- Wave (c) completing around $235–$240 - an ideal entry point for the next leg higher
The chart's "Right Side" label reinforces that traders should stay aligned with the upward momentum.
Key Levels and Trading Approach
The critical invalidation level sits at $222.53 - as long as Amazon holds above this threshold, the bullish outlook remains intact. The analysis emphasizes "We Do Not Recommend Selling," viewing recent weakness as a buying opportunity rather than a warning sign. The strategy is straightforward: stay on the right side of the trend and avoid counter-trend trades until a clear invalidation occurs.
Broader Market Context
Amazon's technical strength aligns with renewed momentum across large-cap tech. Strong Q3 earnings, AWS growth, and expanding advertising revenue have bolstered investor confidence. The Elliott Wave structure confirms what fundamentals suggest - this stock has room to run.
Usman Salis
