The short-term Elliott Wave analysis for Amazon shares from October 11, 2025, shows a developing five-wave pattern. – **Wave ((i))** started at a low of $222, followed by **wave ((ii))**, which pulled back to $211.03. – Then, **wave ((iii))** began, with **wave i** peaking at $223.32 and correcting in **wave ii** to $216.52. – **Wave iii** surged to $228.98, **wave iv** dipped to $225.54, and **wave v** reached $234, concluding **wave (i)**. – The **wave (ii)** retracement ended at $222.53 after a double three corrective pattern. After this, the stock resumed its climb in **wave (iii)**, reaching $255.55. A slight pullback in **wave (iv)** bottomed at $243.98, followed by **wave (v)** rising to $259, completing **wave ((iii))**. Currently, **wave ((iv))** is active, adjusting from the low on October 17. We expect continued support above $222.53, which could lead to more gains. The 45-minute Elliott Wave chart updates the market’s response after April 11, 2025. Predictions offer cautious optimism, with the next support expected at the 3, 7, or 11 swing levels, which should help maintain upward movement. The current structure suggests that the bullish impulse from October 11, 2025, is not finished. We are in a corrective **wave ((iv))**, providing a tactical entry opportunity. As long as the price stays above the key level of $222.53, the outlook is positive for another upward move. This technical perspective is backed by Amazon’s strong Q3 earnings reported on October 23, 2025, showing impressive growth in both AWS and North American retail segments. Additionally, recent forecasts from the National Retail Federation predict a healthy 4.2% increase in holiday spending compared to last year, creating a strong seasonal advantage. This fundamental support indicates that the current dip is a consolidation before the next rise. For derivative traders, it’s wise to watch for signs of support during this pullback, possibly around the recent low of $243.98. Selling out-of-the-money put spreads with a strike below the $222.53 pivot could be an effective way to collect premium while managing risk. This strategy can benefit from both a price increase and time decay during this consolidation phase. Alternatively, we could wait for the dip to clearly bottom before buying call options or bull call spreads. Implied volatility has decreased from the highs before the late October earnings report, making option premiums more affordable for new bullish positions. An expiration in January or February 2026 would provide enough time for the expected final upward wave **((v))** to unfold. We are also entering a historically strong period for the stock, as Q4 has often seen gains for Amazon. Historical data, such as the strong Q4 performance in 2023, indicates that seasonal strength tends to support stock prices through the end-of-year holiday season. This past trend boosts our confidence in seeking buying opportunities during the current weakness.

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