By Orbex
BABA suggests the construction of a large bullish Ⓐ-Ⓑ-Ⓒ zigzag of the primary degree.
At the moment, the price is at the end of the primary correction Ⓑ. This correction can take the form of an intermediate triple zigzag (W)-(X)-(Y)-(X)-(Z). At the level of 183.53, the intervening wave (X) was complete, and now the final actionary wave (Z) is under development. Its structure hints at a complex formation of a double zigzag W-X-Y.
The decline in wave (Z) is likely to reach the level of 50.39. At that price level, sub-waves (Z) and (Y) will be equal.
After the completion of the primary correction Ⓑ, market participants will see an impulse growth significantly higher than the end of the intermediate intervening wave (X). In other words, it will be above the level of 183.53.
Free Reports:
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Let’s consider an alternative scenario where the formation of the primary correction wave Ⓑ has already come to an end. Thus, in the near future, we can expect the formation of the initial part of the bullish impulse Ⓒ.
Wave Ⓒ could be a simple impulse consisting of intermediate waves (1)-(2)-(3)-(4)-(5), as shown on the chart.
The end of the intermediate impulse (3) is possible near the level of 273.78, on the level of the intervening wave (X), which is part of the primary correction Ⓑ.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
- Stock indices have hit all-time highs. The Australian labor market is starting to cool down May 16, 2024
- Target Thursdays: USDInd, Soybean & EU50 hit targets! May 16, 2024
- JPY has sharply strengthened May 16, 2024
- PBoC kept the interest rate unchanged. The US stock indices rise despite rising manufacturing inflation May 15, 2024
- Meme-stock mania: Will GameStop, AMC stocks surge even higher? May 15, 2024
- Euro climbs to five-week high ahead of US CPI data May 15, 2024
- Australia will release its annual budget today. Rising inflation expectations hurt US stock indices May 14, 2024
- JPY declines again May 14, 2024
- Trade of the Week: CHINAH to extend lead as Asia’s winner? May 13, 2024
- The German index has hit an all-time high. China sees rising consumer inflation May 13, 2024