BABA: Bears target 48.96?
Just like a few weeks ago, a bearish trend continues to form for BABA.
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On the current chart, we can notice the completed actionary wave y and the second small intervening wave x, they are double zigzags.
At the moment, the formation of the final actionary wave z is taking place, which, most likely, will take the form of a primary zigzag Ⓐ-Ⓑ-Ⓒ.
Perhaps the primary impulse Ⓐ and correction Ⓑ have already been completed, so we can expect a decline to 48.96 in the sub-wave Ⓒ. At the specified mark, wave z will be at 38.2% of wave y.
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However, we can expect the continuation of the intervening wave x. According to this view, it will take the form of a double zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ. The first two zigzag sub-waves Ⓦ-Ⓧ look finished.
Most likely, the market is in a wave Ⓨ, which may take a zigzag structure of the intermediate degree (A)-(B)-(C), as shown in the chart. Impulse (A) and correction (B) look formed.
Stock prices may continue to rise to 140.99. At that level, cycle intervening wave x will be at 38.2% of actionary wave y.
Author
Jing Ren
Orbex
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.
