Shares of Amazon have been consolidating in a large wedge or symmetrical triangle pattern for the last six months. I highlighted a test of an internal support line earlier this month which was subsequently broken, setting up the current technical scenario.
The March low touched the 50% retracement level of the 2012 low and the 2014 high, and this week the stock is testing the intersection of the 38% retracement level and the pattern support line. This is obviously a key support level and its integrity will have short-to-intermediate term implications for the direction of the stock price.
