Potential Turning Point for AMZN. The daily chart of NASDAQ:AMZN shows a well-defined long-term uptrend channel and ascending wedge in the short term.
Two possible scenarios:
Breakout upwards: If the wedge breaks upwards, the long-term uptrend continues, targeting the return line of the channel. Despite the uptrend already being mature, this would cancel out the signs of weakness, and the return line would be the next resistance.
Breakout downwards: This seems more likely, as the ascending wedge indicates weakness in the short-term uptrend. A downward breakout could lead to a larger retracement, confirming the lack of a touch on the return line, indicating a loss of momentum in the long-term uptrend. Thus, a deeper retracement could potentially break the uptrend line of the channel.
Let's keep an eye on it. What do you think will happen with Amazon?
