BABA 141.06 To Complete Primary Correction

By Orbex

The 1H timeframe of the BABA stock chart shows the structure of a large Ⓐ-Ⓑ-Ⓒ zigzag.

For the last six months, the market has been moving within the bearish correction, the formation of which continues today.

Wave Ⓑ takes the form of a simple intermediate (A)-(B)-(C) zigzag. Wave (C) sees its fifth part as similar to the ending diagonal since the minute fourth wave ended above the end of the minute first wave.

It is possible that in the near future the price will continue to move down in the wave ⓥ to 141.06. At that level, wave (C) will be at 123.6% of wave (A).

Then the price could start to rise in the primary wave Ⓒ above the maximum of 274.58.

However, the development of the primary correction wave Ⓑ could have completely come to an end.

In this view, it has the form of an intermediate double (W)-(X)-(Y) zigzag. The actionary wave (W) is a double zigzag, and the second actionary wave (Y) is a triple zigzag.

If our assumption is correct, then in the next coming trading weeks, an upward move is likely in a new primary wave Ⓒ above the maximum of 274.10.

Thus, the bulls should have enough strength to push the market up.

By Orbex