Alibaba ($BABA) provides another opportunity from blue box area
|Good day Traders and Investors. In today’s article, we will look at the past performance of 4 Hour Elliottwave chart of Alibaba ($BABA). The decline from 08.26.2022 high has unfolded as 5 swings and made a lower low on 10.24.2022 which created a bearish sequence in the 4H timeframe. Therefore, we knew that the structure in $BABA is incomplete to the downside & should see more weakness. So, we advised members to sell the bounces in 3, 7, or 11 swings at the blue box area. We will explain the structure & forecast below:
$BABA 4h Elliott Wave chart 11.14.2022
Here is the 4H Elliottwave count from 11.14.2022. The decline from 08.26.2022 unfolded in 5 waves creating a bearish sequence. We were calling for the bounce to fail in 7 swings at blue (Y) where we like to sell it at the equal legs at $78.57 with a stop at $87.56.
$BABA latest Elliott Wave chart
Here is the 11.27.2022 4H update showing the move taking place as expected. The stock has reacted lower from the blue box allowing any shorts to get risk free shortly after taking the position. Currently, the stock has already made 5 swings from the peak at ((2)) and expecting bounces to fail below it in 3 or 7 swings for a continuation lower.
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