If ever there was a perfect storm for a stock to take a breather, it is the mighty Amazon. The stock is overbought on all timeframes, shows powerful momentum divergences in its most recent upmove, and is at the very top of its rising price channel. My hourly, four-hour, daily and weekly momentum gauges have notclimbed to new highs along with the price of the stock, which is a classic warning signal that the stock is nearing, or has entered, a condition of upside price exhaustion. Not to mention the potential sentiment exhaustion given The Street's love affair with the name. Just this morning, Morgan Stanley upgraded AmazonAMZN, -1.14% and raised its target to 800 from 750. AMZN has already climbed from 285 to 676 during 2015 and enjoys the admiration of Wall Street research analysts who accord the stock 25 Strong Buys, four Holds, and zero Sells. The average target price is 710.00. The blogger stock jockeys are extremely bullish as well, at a whopping 84% bulls (according to TipRanks). From my technical perspective, I am expecting AMZN to peak and reverse from its upper channel boundary line. This could mean a 1%-2% upper channel overshoot that points to a maximum target zone of 687 prior to the expected correction. Watch for the correction to break support at 645/40 and press to 610/00 thereafter. More from MarketWatch