FX.co ★ Technical analysis of Amazon for July 27, 2021

Now looking at Amazon we can see the same accumulation cylinder building between 2008 and 2015, when Amazon breaks out of the accumulation cylinder and starts to accelerate higher. We can also count point 8-9 and 10 from Livermore's chart whit the possible top in Amazon seen at 3,666. At this point we haven't seen the possible breakdown in point 11, so we have no confirmation yet, that the possible top is in place. Therefore we still need patience and must allow for the possibility, that Amazon could continue higher to the next possible target at 4,268 before peaking.

What we do know is the best part of the rally out of the accumulation cylinder now is behind us and the risk of the largest decline since 2008 is clearly present. A break below support at 3,499 will be the first warning that Amazon has peaked and a multi-year correction is developing.

Trading recommendation:

Tighten your stop to just below 3,499