AMZN Amazon Monthly Chart; King Bezos is the $105 Billion-Dollar Man the Richest Man in the World; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation

AMZN prints new all-time records day after day. Amazon CEO Jeff Bezos is the richest man in the world. King Bezos sits on a throne overseeing the entire retail empire. The Bezos wealth surpasses $105 billion. Don't forget to tip the bellboy.

The chart has been stellar in recent years and of course Amazon is one of the five FAANG stocks (FB, AAPL, AMZN, NFLX, GOOGL) that have driven the broad stock indexes higher.

The monthly chart is likely topping out early this year and it is a multi-month and probably multi-year top in play for mighty Amazon in 2018. All those young people that took their Christmas and Hanukkah money and ran to buy shares of Amazon will be disappointed when the next holiday season comes round.

The red rising wedge pattern is ominous. The RSI and stochastics are overbot and agreeable to price retreating lower. The red lines show negative divergence in play for all indicators except the MACD line and that RSI trying to sneak a bit higher. The month has a long way to play out, so the RSI can easily finish the month level or lower so that is not much of a concern. However, the long and strong MACD line will want another higher high in price after a pullback occurs. Then when price comes back up on the  monthly basis the MACD line should turn neggie d and that will identify the long-term top for AMZN.

AMZN has tagged the upper standard deviation band so the middle band at 922 is on the table. Price is way extended above its moving average lines requiring a mean reversion lower. The stage is set for a pull back. Looking at the AMZN weekly chart, the indicators are neggie d sans the MACD line so price should top out say about 2 weeks out.

The projection would be that AMZN stutters along at the current levels for a week or two, then rolls over to the downside and trails lower from 2 to 5 weeks. The price will come back up to the current highs again over a couple-week period. At that time, when AMZN comes back up in price, that should be THE top but only if the MACD line has gone neggie d. If the MACD line remains long and strong, one more jog move would be required on the monthly basis (down for one month then back up again).

Thus, AMZN should top out in the near-term over the next couple weeks. AMZN should trail lower 2 to 5 weeks perhaps to the 1100-1200 area, say February. Then rally again to the record highs say in late February early March and that may be THE top. If not, the top will likely be in before May-June.

So if you enjoyed many years of gains it is likely best to exit AMZN as the weeks play out. You can do it in four stages selling one-quarter of it in January, then another in February, another in March and the last in April. AMZN is not worth playing on the long side going forward. If you are experienced and a risk-taker you can consider shorting this strong momentum play say in a couple weeks. Keystone has no position in Amazon currently.

King Bezos needs to enjoy his vast riches since they will likely be a smidgeon smaller come the end of the year. A target at 900-1100 for the end of the year is doable. Probably 99% of Wall Street expect 1500 this year and who knows maybe they are correct. The chart says they are not. The long-term multi-month and multi-year top for Amazon will likely print in the February-June window. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.