The short-term Elliott Wave analysis for Amazon shares from October 11, 2025, shows a developing five-wave pattern. It began with wave ((i)) which hit a low of $222 and then wave ((ii)) which pulled back to $211.03. Following this, wave ((iii)) began, with wave i reaching $223.32 and then correcting in wave ii to $216.52. Wave iii increased to $228.98, wave iv dipped to $225.54, and wave v reached $234, completing wave (i). Wave (ii) retracement concluded at $222.53 after a double three corrective pattern. The stock then climbed in wave (iii), reaching $255.55. A slight pullback in wave (iv) bottomed at $243.98, followed by wave (v) which rose to $259, completing wave ((iii)). Currently, wave ((iv)) is active, adjusting from the low on October 17. We expect continual support above $222.53, which could lead to more gains. The 45-minute Elliott Wave chart shows the market’s response after April 11, 2025. Predictions are cautiously optimistic, with support expected in the 3, 7, or 11 swing sequence to continue the upward trend. Right now, Amazon’s structure suggests the bullish move from October 11, 2025, is ongoing. We are in a corrective wave ((iv)), which is a good chance to enter. As long as prices stay above the key level of $222.53, the outlook is positive for another upward move. This technical view matches the strong Q3 earnings Amazon reported on October 23, 2025, highlighting growth in both the AWS and North American retail segments. Additionally, the National Retail Federation forecasts a healthy 4.2% rise in holiday spending compared to the previous year, providing strong seasonal support. This backdrop indicates that the current dip is likely just a consolidation before the next rise. For derivative traders, it’s crucial to look for signs that this pullback is finding support, especially around the recent low of $243.98. Selling out-of-the-money put spreads with a strike below the $222.53 level could allow us to collect premium while managing risk. This strategy benefits from both a price increase and time decay during consolidation. Alternatively, we could wait for a clearer bottom before buying call options or bull call spreads. Implied volatility has decreased from highs seen before the late October earnings, leading to more affordable option premiums for initiating new bullish positions. An expiration in January or February 2026 would allow sufficient time for the expected final upward wave ((v)) to develop. Historically, the fourth quarter has been a strong period for Amazon, often bringing gains. Looking back at previous years, such as 2023, we have seen seasonal strength carry the stock through the end-of-year holiday season. This historical pattern boosts our confidence in seizing buying opportunities during the current weakness.

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