$AMZN TOP 20

$AMZN released their earnings report yesterday and the street did not like it, declining sales on their e-commerce platform and a guide miss for Q3 has caused this to slump -8% in the PM and I think that is justified.

AWS continues to be the star performer for $AMZN....$AMZN did address their declining sales issue in June when they revealed that they will sell products similar to Temu and directly from China, this development would not have been reflected in the earnings report.

The overall message from the report is that the consumer is tightening their spending, this reflects the reduction in inflation and concerns about the economy, by in large, $AMZN should be able to gauge the economic climate with the enormous data they have on consumer spending.

On the chart, we can see that the AH's and PM price dropped exactly to the 200 Day MA at $168 and found support so far, a drop now from $201 to $168 in 3 weeks.

If the 200 Day MA is lost today, I would expect the 0.38 Fib at $155 to offer support and this would be the standard level where I would expect Wave A to complete.

Since the 200 Day MA is sitting in between the 0.236 - 0.38 Fib, it is also a suitable place for Wave A to complete here but for me, I think there is only going to be a small relief bounce if support is found here and not Wave B, we will see how this develops.

If Wave B can bounce back up to the 50 Day MA or the blue line at $188 and rejects, then I will sell a further -20%, on top of the -20% I sold last week.

Needless to say I am happy with how this has moved and how I have managed my risk

There will be many doubts and questions about $AMZNs future as it works down its ABC correction to the 0.5 FIB at $141 but I will be blocking out that noise and keeping to my strategy of building a sizeable position in $AMZN and it will likely account for 30% of my entire portfolio.