My near-term technical work in Amazon (AMZN) argues that all of the recent action is carving out a base-like formation that represents the ending phase of a downleg off of the 191.40 high established on Feb 14.

If such a scenario is unfolding, then AMZN will have to hurdle key resistance between 168.00 and 169.75 to trigger near-term buy signals that will project target zones of 172-173 and then 176-177.

Naturally, failure to hurdle resistance, followed by a decline that breaks both today's low at 164.82 and yesterday's low at 163.90, will wreck the current basing pattern.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.