It is interesting that into the Valentines Day recovery rally high at 193.57, which peaked just shy of fully testing a significant resistance line at 195.00 (at the time), Amazon (AMZN) pivoted to the downside and attracted the ire of a Wall Street research analyst (MS), who downgraded the stock to Equal Weight from Overweight.
Be that as it may, from a technical perspective, let's notice that the sharp decline nonetheless has not violated the lower zone of the 8-week base pattern, in the vicinity of 172.00 to 168.00, at least not so far. Thus, the acute weakness still must be considered another test of support within a still-developing base formation that remains very much intact.
That said, I do not yet have confirmation that the decline from 193.57 to 175.14 is a completed leg within the base. My micro pattern and momentum work suggest strongly that AMZN still has unfinished business on the downside that will retest the Feb 1 low at 172.00 prior to my expectation of a powerful upside reversal.
