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Has AMZN Reached Post-EPS Upside Exhaustion?


Below is what we discussed back on Jan 30 of this year after Amazon.com Inc. (AMZN) reacted violently on the upside to its latest earnings report.

As it turned out, AMZN over shot my optimal target of 370, to a post EPS high at 378.80.

Both from a pattern and momentum perspective, the upleg from Jan 16 at 285.25 to the Feb 5 high at 378.80 appears complete, and that baring a new, bullish catalyst, AMZN has started a correction that should press the stock into the 348-343 target zone in the day directly ahead. 02/09/15

AMZN upside explosion in excess of 10% in the aftermath of earnings inflicted serious damage to the bear phase that gripped prices from Jan 22, 2014, high at 408.06 to to a series of lows in the 285-277 area.

The reaction to EPS has thrust AMZN above its two down trendlines at 321.25 and 329.20, as well as its prior recovery-rally high at 341.26 hit Nov 26, 2014, which leaves behind a large, well defined “W” bottom formation that has a minimum upside target of 370.00.

The key question is whether and how much AMZN will pull back prior to the heading for 370?

Key support resides at 341 to 338, and then down at 330-328. 1/30/15

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