AMZN Amazon Weekly Chart; Overbot; Negative Divergence; Upper Band Violation; Price Extended

Poor Amazon. We hardly knew ye. "Taps" is the only appropriate song for AMZN now. The melody fits perfect with repeating the words, "neggie-d" over and over. Keystone has been watching AMZN the last few weeks waiting for the negative divergence to form to call the top. The end is nigh.

With the matching price high last week, a mini-Tweezer Top, the chart indicators can be assessed for neggie d. As usual, the MACD line was the last kitten to herd and as seen above, it is finally out of gas like the other indicators (sloping down while price moves higher; negative divergence; the indicators are negatively diverging away from the rising price). You have to wait until all the indicators go neggie d to call the top and now you can call the top in Scamazon on the weekly basis.

You can see that the MACD was long and strong up through the prior week so it was wine and roses through the end of January. Traders and investors remain bulled-up this past week but the chart clearly shows that the joy in price required all the remaining juice out of the MACD so it is time for the neggie d spankdown. The indicators do not have anymore strength to take price higher.

A multi-week down move is expected going forward for AMZN. If you bot AMZN stock last week, caught up in the current hype and bullish euphoria, you will get your face ripped off over the next couple-three weeks. Every top needs a bag-holdin' sucka. The RSI and stochastics are overbot agreeable to a pullback.

The blue circles show distribution taking place with the smart money sloughing off shares to the dumb money even during the low volume weeks as the new year started. Bezos is standing on the street corner selling his Scamazon shares to anyone willing to buy; he is hoping to get out before the bottom falls out.

The red rising wedge pattern is bearish and price is about to fall through the lower rail. The upper band was violated so a move back to the middle band at 211 and lower band at 177 are on the table. Price is extended above the moving average ribbon, with AMZN price above the 20 above the 50 above the 200, requiring a mean reversion lower.

The Aroon is showing the comical behavior that is appearing in other high-flying out-of-control stocks. The green line shows that 100% of the Amazon bulls believe price will go up forever. No surprise, right. They be talkin' their book. The Aroon red line shows that 100% of the Amazon bears also believe that the stock price will go up forever. That is funny. Every single person on the SS Amazon-Titanic is on one side of the ship; the side that does not have life boats. All you can do is sing "Shenandoah" and wish good luck to all those poor dumb b*stards partying on one side (long) of the Scamazon boat.

Keystone is not holding AMZN now long or short but obviously the play forward is short. A multi-week spankdown is on tap for AMZN. As Lawrence said, it is time to say good-bye to sweet Amazon, adios, au revoir, auf wiedersehen. 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.

Note Added Wednesday, 2/12/25, at 6:55 AM EST: AMZN is 232.12 in the pre-market. Yesterday's close is 232.76. The 20-dy MA S/R is 232.81. It is time for AMZN to bounce, or die. The 50-day MA support is 226.59 and rising. Appaloosa's David Tepper, that a lot of people follow on Wall Street, like the old E F Hutton commercial, cut his exposure to META and AMZN in favor of Chinese tech stocks. Hightower's Stephanie Link, a CNBC commentator, remains bullish on Scamazon. She is putting more money into AMZN. King Bezos is tip-toeing out the back door after ditching billions in AMZN stock to end last year.

Note Added Friday Morning, 2/14/25, Valentine's Day, at 6:11 AM EST: AMZN is at 230.37. The 20-day MA fails and price slips lower to test the 50-day MA at 227.51 support, and bounces back to 230-ish. The 50 is Scamazon pausing at the top of the high-dive, if it fails (227), it is the diver lunging off the platform and falling like a rock to depths unknown.

Note Added Tuesday Evening, 2/18/25: AMZN 226.65. Price drops to 223.72 today but recovers. The 50-day is 228.13. Price has failed and expected to drop. The 100-day is at 211.70. The 20-wk MA is 215.43. With the gap fills, price support and moving average support levels, a drop to the 207-217 should be on the table. Weekly chart has started its descent so that will go on for a few weeks. Daily chart still weak and bleak but starting to bottom so probably will bounce this week, then after a few days (a week or so), price will roll back over to the downside to continue the weekly downtrend that is underway.