Amazon stock price was below $300 at the start of last year. It is currently at $700. The stock rallied more than 50% from the low made in February this year.

As old brick-mortar retailers are sold off it seems market perception is they have no chance against the online giant.

Current Amazon market cap is $330 billion making it 7th largest US public company.

Even with the bright outlook current valuation seems steep and price action suggest some consolidation should be expected.

1st Channel

AMZN Daily Chart

AMZN 1st

Stock is still in an uptrend channel going back to 2014 and the channel provided a very precise buy point in February this year, noted with blue arrow.

This channel has served the purpose with 4 tags.

2nd Channel

AMZN Daily Chart

AMZN

The 2nd channel formed through August 2015 and January 2016 lows on the lower rail and December high on the upper rail.

The channel AGAIN provided a very precise trade point.

50% rally in 3 months with very bullish sentiment suggest some consolidation is due.


Disclaimer: This is not investment advice. 

All information should be used for educational and informational purposes only.