Stock Charts Video: AMZN, NFLX, BA & BABA

Our Stock Waves Charts of the Day video features, Inc. (AMZN), Netflix, Inc. (NFLX), The Boeing Company (BA), and Alibaba Group Holding Limited (BABA).

AMZN is filling out a nice 3-wave flat off the low last week.  It's in wave (c) of circle wave iv on the chart, heading into our target region between 1841 and 1871.  

So if it can hold this 1871 Fib retracement target and turn back down to a new low from there, that will give us a nice-looking 5 waves down from the July high, further confirming a significant top in place and the beginning phases of the next corrective decline.

NFLX appears to have a 1-2 set-up to the upside as the start to the blue 5th wave up on the chart.  But until we get an indication of a bottom in place and a micro 5 waves up off the low, we still have to remain a little bit cautious.

BA has a nice micro 5 waves down from the July high, which is potentially the start (circle wave i on the chart) of the bigger C wave lower.  If that's the case, it has room for a near-term bounce in circle wave ii.  The standard 38.2% to 61.8% retrace would take it to around 345 to 360, before turning back down and providing a short opportunity in the circle wave iii of C.

BABA is continuing to look bearish as long as we're below the July high with a possible 1-2 start to this ending diagonal (c) wave to the downside.  The chart looks like it's filling out a nice 3-wave bounce off last week's low so far.  Today's high could have completed wave 3 of micro (c); we're now consolidating in wave 4; and wave 5 should take us up to at least the 61.8% at 167.82 or maybe even slightly beyond before trading back down.  

So a decent risk-to-reward for a potential short at the next high here using a stop above that July top.

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Alpha Stockman 1 year ago Member's comment

Good analysis. What other stocks do you cover?