A head and shoulders pattern has emerged on AMZN. Similar to the H&S patterns found in other equities and indices this patterns represents a market reversal. Though the pattern is more clear when viewed on a the daily chart, I used the weekly to show how the targets of support lines (dotted white), match up with the long term trend line (solid white) as well as the % of change for the H&S. Head and shoulders patterns usually retract by about the same percent that they increased. In this case it is about 40%. The intersection of support, trend and percentage gives a good indication of how low this stock is likely to go. Yellow area is target..
