AMZN popped a wheelie in after-hours trading, fueled by earnings that exceeded the Street’s most optimistic expectations. Hugely profitable web services were the kicker — up 58% to $2.89 billion compared to the last quarter. Traders lost no time re-pricing Amazon shares with an 11% surge in the blink of an eye. The spike hit $788, a $36 gain relative to the regular-session closing price of $752, but there’s still room for more upside to as high as 803.72. That’s the rally target of the pattern shown, and judging from the sharp penetration of the 784.97 ‘secondary’ pivot, it’s a decent bet to be reached. ________ UPDATE (August 1, 8:49 p.m. EDT): The stock doggie-paddled against eddies of tedium, closing above a 766.10 midpoint pivot associated with the target at 803.72. This is of course bullish, but it will go nowhere until such time as the broad averages get in bullish gear. _______ UPDATE (August 3, 12:27 a.m.): Tuesday’s bottom slightly breached a key ‘external’ low at 757.06, turning the hourly chart impulsively bearish. This deserves caution, but we’ll need to see how the presumptive correction plays out before we draw more-bearish inferences._______ UPDATE (August 4, 10:06 p.m.): Amazon reversed sharply after trapping bears with an opening-bar feint south. Expect the rally to reach D=778.30 if it exceeds the 764.33 midpoint resistance of this pattern: 60-minute, A=742.55 on 7/28. There is an even bigger pattern, with a 798.37 target, adding boost to this rally (A=687.50 on July 27). ________ UPDATE (August 19, 1:56 a.m.): The 778.30 target is still valid in theory, but I’m going to de-list this tout at the end of today’s session lest we bore ourselves to death monitoring AMZN’s progress toward it. At this point, the tout is only cluttering up my home page.
