My near and intermediate-term work in Amazon (AMZN) has the right look of a price structure that has completed a significant upleg from its June low at 181.59 to its July high at 229.25.

Let's notice that the most recent upleg traversed its 5-month bullish channel and popped above the upper channel line, only to reverse back into the confines of the channel.

The weakness off of 229.25 has carved out corrective form that points lower towards key support levels at 203-202, which if violated should trigger downside continuation towards a test of the lower channel support line in the vicinity of 195-193.

 

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