AMZN Amazon Monthly Chart; Overbot; Negative Divergence Developing

Since August is in the rearview mirror and Autumn begins Saturday, it is a good time to take  look at the FAANG (FB, AAPL, AMZN, NFLX, GOOGL) monthly stock charts. Facebook has rolled over after placing highs in February and July. Apple continues enjoying upside momo. Amazon is the strongest of the FAANG stocks and will be last to place its long-term top. Netflix wobbles at it hangs around near record highs. Alphabet (Google) is the weakest besides Facebook.

FB has likely placed its long-term top. GOOGL will likely print its multi-month and perhaps multi-year top now through November. NFLX will likely top-out next in October-November. AAPL will place its long-term top in October-December likely before the year ends. Amazon will be last of the FAANG's to be defanged likely placing THE top in the October-January time frame.

For the AMZN monthly chart above, the status quo continues. The MACD line and money flow continue ramping higher providing more juice for price. Thus, after  pullback due to the negative divergence with the other indicators, Amazon will come back up again for a matching or higher high. At that time, say October-November, if the MACD line rolls over, THE top is in for mighty Amazon. It may play out where the MACD line continues higher so the top will be pushed off to November-January. Since Amazon is such a market-leading strong stock it will likely be last to roll over after the broad stock market is already heading south.

The upper band is violated so the middle band at 1302, and rising, is on the table. It is about time that Amazon showed respect to the middle band, the 20-mth MA, since the last time was late 2014 early 2015. The RSI and stochastics are overbot agreeable to a pullback in price.The ADX still shows a strong trend at 71 in fact this is off the charts. The upside is a strong trend higher. 

Price needs to back off the highs like the red candlestick now shows down -3.4% for September. Then AMZN should rally higher again to satisfy the money flow and MACD line. If the neggie d appears with the MACD as th enew price high prints, THE top will be in. For Amazon, it looks like November-January is a good guess for THE multi-month and multi-year top for AMZN. If you have enjoyed huge multi-year returns from Amazon, keep scaling out as time moves along since THE top is approaching soon. Take one-fourth of the long position off each month going forward. 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.