AMZN Update for 01.05.2008

AMAZON - AMZN

Monthly chart shows a large 3 wave abc corrective pattern into .886 fib resistance. The move up from the November 2001 low into the October 2007 high was made with flat volume. While the price remains above the 8ema on this timeframe, I still think we can look to continued weakness in the weeks ahead.

Weekly chart shows bulls are currently finding resistance from sellers as they try to test the October high.

Daily chart shows yet another 3 wave abc corrective pattern into .786 fib resistance, creating a bearish gartley butterfly type pattern. There is also a head and shoulder reversal pattern. Friday's price action shows a major change in trader/investor sentiment as sellers gapped down the price at the open and took the price down sharply to close on the lows for the trading session. Citigroup Analyst upgraded this stock from a "hold" to a "buy" last week. Look for the stock price to trade lower, towards the last support of $76.50 area.