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Amazon, Inc.: Seeing the Elliott Wave Pattern is Believing

There was no mistaking the bullish technical picture in AMZN stock back in 2016, right before prices reclaimed the upside

by Nico Isaac
Updated: September 20, 2017

I recently read an article chronicling one of the earliest known records of "photo-shopping." The time was 1865, in the aftermath of the assassination of U.S. President Abraham Lincoln, when a prominent portrait artist superimposed Lincoln's head onto a more statuesque politician's body in hopes of making the gangly President appear more heroic and regal.

It made me realize: It's never been easy for people to trust what they're seeing as true. And that's especially relevant when it comes to assessing the true picture of financial market price trends using traditional forecasting methods.

On the regular, mainstream financial "photographers," (i.e. analysts, advisors, strategists et al) cast a market in a positive light -- only to retouch it moments later with a completely bearish filter.

Take, for instance these totally conflicting news items regarding the shares of Amazon.com, Inc. (Nasdaq: AMZN)

  • Photo 1, AMZN is weak: "Why Amazon Shares Look 'Vulnerable'" (Aug. 24 CNBC)
  • Photo 2, AMZN is strong: "Top Analyst: Amazon is About to Take Off" (Aug. 30 CNBC)
  • Photo 3, AMZN is both weak and strong: "How Amazon's Stock Could Rise to $3000 -- or fall to $400" (Sept. 18 Market Watch)

They can't all be true at the same time!

Which begs the question: Is there a way for investors and traders to procure a real, genuine account of price action?

The answer is yes. And in our opinion, the way is through Elliott wave analysis, as part of a technical assessment of market price trends. With Elliott wave analysis, usually what you see is what you get.

The way our senior analyst and Trader's Classroom editor Jeffrey Kennedy puts it, Elliott wave patterns are as unmistakable as a blood pressure reading or heart rate.

Let's revisit Amazon, for example. Over a year ago, in his January 22, 2016 Trader's Classroom video lesson, Jeffrey Kennedy presented a detailed price chart of AMZN stock and set about diagnosing the market's technical health via Elliott wave analysis. At the time, prices were entrenched in a powerful sell-off. But, according to the true Elliott wave picture, Jeffrey saw Amazon "on its way to a full recovery beyond the 696.44 level."

Soon after, AMZN began to soar, 696, 700, then 800 in its rearview before petering out in December 2016. Then again, for his December 30, 2016 Trader's Classroom Jeffrey ended the year with a bullish forecast for the tech wonder.

Go ahead and play the video below to hear actual excerpts from Jeffrey's Trader's Classroom video analysis of Amazon:

 

The chart below shows how the January 22 and December 30, 2016 Trader's Classroom episode captured the true, bullish picture of Amazon shares.

Amazon shares Traders Classroom chart

In the interest of truth, no method of financial market analysis is fool-proof. Elliott wave analysis, even with a fortified technical analysis toolbox, is no different. What Jeffrey Kennedy's Trader's Classroom offers, however, is an objective interpretation of market price trends based on the waves of investor psychology -- 100% untouched as they unfold in real time.

One-of-a-Kind, Ongoing Mentorship Service for Active Investors and Traders

Trader's Classroom teaches you how to look at charts and spot trading opportunities for yourself. You'll get 15-20 video-based lessons each month that help you master the many critical aspects of finding -- and acting on -- high-confidence trading opportunities in your markets.