Ali Baba ticker symbol: BABA Elliott wave view suggests that the cycle from 6.05.2018 peak is having lower low sequence & missing the extreme areas to the downside still, which we have highlighted in our previous blog here. Below is the 4 Hour updated Chart from 1/07/2019, showing BABA having a bearish sequence tag & right side calling lower against $169.17 peak. Down from that peak the stock ended the primary wave ((1)) as an impulse structure where intermediate wave (1) ended in lesser degree 5 waves at $150.51 low. A bounce to $158.05 high ended intermediate wave (2). Then a decline lower to $132.91 low ended intermediate wave (3) in another lesser degree 5 waves structure & intermediate wave (4) ended at $138.50 high. Finally a decline lower to $129.10 low ended intermediate wave (5) in lesser degree 5 waves structure and also completed primary wave ((1)).
Currently, the stock is correcting the cycle from 12/03/2018 peak ( $169.17) in primary wave ((2)) bounce. The internals of that bounce is unfolding as a zigzag structure where intermediate wave (A) ended at $142.51. A pullback to $129.83 low ended intermediate wave (B). Up from there, intermediate wave (C) remain in progress & has managed to reach 100%-161.8% Fibonacci extension area at $143.28-$151.60. Although shorter cycles suggest more intraday strength to take place within the blue box area. But soon expected to find sellers in the instrument within the blue box area for next leg lower ideally. We don’t like buying it and expect sellers to appear in blue box area soon looking for 3 wave reaction lower at least.
BABA 4 Hour Elliott Wave Chart
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