(Click on image to enlarge)

On the 1H timeframe for Amazon (AMZN) shares, we can notice the formation of a bearish correction b. This takes the form of a zigzag of the primary degree Ⓐ-Ⓑ-Ⓒ.

The depreciation of prices is likely in the final intermediate wave 5 of (5) of the leading diagonal Ⓐ to the level of 48.55. At that level, minor wave 5 will be at 123.6% of impulse wave 3.

Wave 5 can take the form of a minute impulse, as shown in the chart.

(Click on image to enlarge)

However, another scenario shows the leading diagonal Ⓐ could be completed. Now, the price is moving within the sideways correction Ⓑ.

There is a high probability that the correction wave Ⓑ will take the form of an intermediate double three (W)-(X)-(Y). The second intervening wave (X) has come to an end.

In the coming trading days, an upward movement is expected in the final wave (Y). This wave could be a zigzag A-B-C and go towards 146.85, where the wave (W) was completed.

More By This Author:

The BoE To Hike, Or Not?
USDCHF: Standard Or Triple Zigzag?
Fed Expected To Hike By 25bps