Amazon (AMZN) Technical Analysis

The Amazon (AMZN) stock has been in a strong uptrend.
Price action made a new high at $3771 on 13 July 2021.
S strong retracement offers a investors and traders a potential discount.
Let's review the weekly and 4 hour charts.

Weekly Chart Amazon

Amazon is a clear and strong uptrend. Higher lows and higher highs dominant the weekly chart. The recent 15% retracement did not break the previous bottom either and is therefore a new higher low. The Amazon stock is now offering a bullish bounce after this 15% retracement:

The uptrend is characterized by 5 bullish waves up (purple).
The 5 waves probably complete a wave 3 (pink).
The current retracement is expected to be a wave 4 (pink).
Waves 4 are usually lengthy, choppy, and corrective. The wave 4 could easily become extended and last the entire 2021 year. In that case, price action will make a strong bearish bounce (red arrow) to test the bottom (blue arrow).
In the short-term, the resistance zone (red box) could stop price for a bearish pullback (orange arrow).
Support is expected at the trend line (green) for a bullish bounce (green arrow).
A bull flag pattern (grey arrows) could indicate an uptrend continuation (green arrow) rather than a lengthy wave 4.

4 Hour Chart Amazon

The strong bullish bounce is now approaching a key resistance zone (red box and red line):

A bearish bounce could take place at the resistance confluence (orange arrows).
A bearish retracement could retest the support zone on the left (green box).
The support zone should act as support for a bullish bounce (blue arrow).
An immediate break above the resistance zone (orange pause button) could signal a strong bullish price swing. In that case, a bearish pullback might take place later.
A break below the bottom (blue box) invalidates (red stop button) the bullish outlook.