Amazon's Elliott Wave Sequence Looks Like It Is Calling Higher

Amazon AMZN has provided huge positive returns to its investors in the recent decade. Last week AMZN managed to make new all time highs after breaking above its October 2016 peak, this move opened an extension higher as the stock now shows an incomplete bullish sequence from February 2016 low and could extend more to the upside while the pivot at November 2016 low keeps holding.

The stock's minimum target remains at $883, which is the equal legs level from an October 2014 low and it may slow down around that area. Below are three bullish Elliott Wave Scenarios, starting from the most aggressive approach to the less bullish one :

Amazon Scenario 1 :

AMZN did see a pullback in wave (b), but still needs to break above the previous peak to resume higher toward the equal legs area $885-$905 where it could end wave A as a leading diagonal structure from November lows and start a 3 waves pullback. The stock could still make the double in wave (b) but the pivot at $803 low needs to keep holding for the stock to extend higher.

Amazon Scenario 2 :

If the $803 pivot fails then AMZN could end wave ((iii)) at the recent peak do a wave ((iv)) pullback as a double three structure looking to reach equal legs area $831-$825 before resuming higher toward the $883 target where it would end 5 waves and should see then 3 waves pullback.

Amazon Scenario 3 :

The less bullish path would be if AMZN ends the cycle from November 2016 low as 3 waves Flat structure and begins to correct, which means a larger pullback could occur that would reach the 50 percent area around $785. The stock would still remain supported as long as pivot at the $710 low remains in place for a move to the upside.

Recap :

Amazon's cycle from both October 2014 & February 2016 is still alive as the stock managed to make new highs and show a bullish sequence from those previous lows. Amazon now may be looking for a first target around $883 area and could extend later all the way to reach $1083 level. The short term pullbacks should remain supported and find buyers at least for a 3 waves bounce .