Boston, MA 04/09/2014 (wallstreetpr) – Amazon.com, Inc. (NASDAQ:AMZN) (Closed at $327.07, Up 2.93%) opened positively and traded positive the whole trading session and settled above the previous day’s high. The stock traded with more than its average volumes of 6.59 million shares. The quarterly numbers are ahead, and this may be one of the triggers for the stock to start its rally. The stock has been under pressure for the last three months and has fallen almost $95 from its recent and 52-week high of $408.06 making a low of $313.13. Stock has been continuously falling since last few trading sessions and now it is showing signs of reversal.
Amazon.com, Inc. (NASDAQ:AMZN) was in a corrective phase from the last three months dropping almost $95 from its highs. Currently, it seems that the price fall of $70.33 (from $408.06 to $337.73) is marked as ‘A’ wave of the correction. Wave ‘C’ is almost equal to the fall of wave ‘A’ i.e. $69.98. There was a gap in the price area of $311 – $312 which has not yet filled and the stock is taking supports at these levels. A Wave formation also suggests support near the $312 area. But if the stock does not manage to hold above $312 then wave ‘C’ may extend to 1.618% of wave ‘A’ and may fall further to $277. A bounce of at least $30 – $40 can be seen in the stock even if it may not start a new rally as it is very much oversold in the indicators and oscillators.
Currently, the stock of Amazon.com, Inc. (NASDAQ:AMZN) seems to have completed its correction near $313. The stock is trading below its 50 and 200 DMA which create suspicion for a new rally. But investors should not miss this opportunity as the risk reward ratio is very much favourable. The stock can be entered near the current prices of $327 and stop losses of $310 can be maintained in the stock. Once it breaks below 310$ the levels of $277 can also be seen in the stock in the near term.
