In this Elliott Wave update, we look at the latest structure in Amazon.com Inc. ($AMZN). The stock appears to have ended the bullish cycle from February 2026 and has since turned lower in a larger corrective pullback. However, the decline still looks corrective rather than impulsive. As a result, $AMZN is now pulling back in 7 swings, and the current structure is opening a Blue Box Area buying opportunity.
5 Wave Impulse + 7 Swing WXY correction
$AMZN Ended the Cycle From February 2026
Looking at the 45-minute chart, $AMZN completed the rally from the February 2026 cycle and then started to correct lower. After reaching a meaningful high, the stock failed to extend further and shifted into a bearish swing sequence.
This change matters because it suggests the prior bullish cycle has ended for now, at least in the short term. Even so, the decline does not yet look like the start of a larger bearish trend. Instead, the structure continues to point to a corrective pullback within the broader sequence.
Pullback Is Unfolding in 7 Swings
At this stage, $AMZN is not dropping in a straight impulsive move. Instead, the stock is developing a 7-swing correction, which is a common Elliott Wave pattern after a completed cycle.
More specifically, the decline is unfolding as a W-X-Y structure. This tells us the market is still correcting the prior advance rather than building a sustained bearish trend. Therefore, the current weakness should be viewed as part of a corrective sequence that can offer support lower.
Blue Box Area Offers Buying Opportunity
Most importantly, the Blue Box Area between 246.44 and 240.92 marks the next key support zone. This is the area where the 7-swing pullback can finish and where buyers are expected to appear.
Typically, Blue Box Areas represent high-frequency reaction zones where selling pressure starts to fade and buyers step in for a bounce. In this case, if $AMZN reaches that region, the stock can attract buyers and produce a recovery from support.
For that reason, we do not like selling into the blue box. Instead, the preferred view is to watch that area for a buying opportunity as the correction matures.
Short-Term Outlook for $AMZN
In the near term, the focus remains on the current decline into 246.44–240.92. As long as the stock continues to pull back in a corrective structure, that area remains the next important support to watch.
Once the blue box is reached, buyers can step in and trigger a rebound. That bounce would confirm the market found support in the expected reaction zone and would fit the idea of the larger correction unfolding in 7 swings.
Meanwhile, the broader structure remains valid as long as $AMZN stays below the 278.61 invalidation level on this short-term view.
Technical Summary
To summarize, $AMZN appears to have ended the cycle from February 2026 and is now pulling back in a 7-swing correction. Most importantly, the Blue Box Area at 246.44–240.92 stands out as the next buying opportunity, where buyers can appear and trigger a reaction higher.
Accordingly, traders should keep a close eye on that support area as the corrective structure approaches completion.