Amazon – Annual Review
Since our call in June 2025, Amazon has advanced by more than 17%. This Annual Review focuses on the end-of-year and recent technical signals to evaluate whether our strategy remains aligned or requires adjustment.
Amazon’s importance extends well beyond its standalone performance. As one of the largest constituents in both the S&P 500 and the Nasdaq, its price action has a meaningful impact on index-level momentum, breadth, and overall market tone. Sustained moves in Amazon often reinforce broader trends in large-cap growth and technology-heavy indices, while periods of weakness can act as a headwind for the market as a whole. For that reason, reassessing Amazon’s technical structure is not only critical for the stock itself, but also for understanding the dominant forces shaping the broader equity landscape.
CANDLES
Amazon completed 2025 with constructive candlestick and technical signals on the quarterly and larger frames. December’s monthly candle was likely a bullish-leaning Inside candle, signaling the end of the November–December consolidation and a potential resumption of the long-term rally. A very strong start to January, supported by a solid technical backdrop, points to the possible beginning of wave 3 of a higher degree.
Overall, the stock remains bullish until signaled otherwise.
Elliott Waves
Long Term
At the beginning of June 2025, I outlined a long-term roadmap that discussed the possibility of a major wave (3) beginning. Since that call, Amazon has gained over 17%. From a wave perspective, the stock has likely completed waves 1 and 2, as well as waves i and ii of 3. Several technical indicators are now starting to support the hypothesis that Amazon is developing wave iii of 3. Approximate targets based on the most classical Fibonacci ratios are shown on the chart.
SUMMARY:
Amazon has made solid progress since the June 2025 call, advancing over 17% and closing 2025 with constructive signals on the quarterly and larger frames. December’s monthly Inside candle leaned bullish, marking the end of the late-year consolidation and setting the stage for a renewed advance. The strong start to January, supported by improving technical conditions, reinforces this constructive backdrop.
From an Elliott Wave perspective, Amazon likely completed waves 1 and 2, along with waves i and ii of 3, and is now showing early signs of developing wave iii of a higher-degree wave 3. With technicals aligning and classical Fibonacci targets outlined on the chart, the stock remains bullish until signaled otherwise.
