Amazon (AMZN) had a great week up nearly 4% and closing just off its high. This positive price action prevented the formation of another in a series of high wick weekly candles, which were looking increasingly ominous sitting just above multiple layers of support. This confluence of the 50 day moving average, the 38% retracement of the 2012 low and the 2014 high, and the interior uptrend line in the $315.00 level, has now been well tested and should supply a firm base going forward.
The daily chart shows the April, May, and June lows centered around the Fibonacci retracement levels of the 2012 low and the 2014 high, and how they have formed a rudimentary inverse head and shoulders pattern with neckline resistance in the $339.00 area. If Amazon is able to break and hold the neckline, the pattern projects a target price in the $390.00 area.