The current chart of BABA shares shows the formation of a bearish corrective trend, which takes the form of a cycle triple zigzag w-x-y-x-z.

Chart

It is likely that at the moment the market is in the final part of this pattern. We see a completed actionary wave y, which has the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ, and a second small intervening wave x.

Now the formation of the final actionary wave z is taking place, which, apparently, takes the form of a primary standard zigzag Ⓐ-Ⓑ-Ⓒ, as shown in the chart.

We saw the completion of the primary wave Ⓐ in the form of an impulse (1)-(2)-(3)-(4)-(5), and correction Ⓑ in the form of an intermediate double zigzag (W)-(X)-(Y). In the near future, stocks may continue to fall in the primary wave Ⓒ in the form of impulse (1)-(2)-(3)-(4)-(5) to 50.96. At that level, primary impulse wave Ⓒ will be at 161.8% of impulse Ⓐ.

Another scenario shows a situation in which the formation of a cycle intervening wave x continues.

Chart

It is likely that the intervening wave x will take the form of a double zigzag Ⓦ-Ⓧ-Ⓨ of the primary degree. The first two zigzag sub-waves Ⓦ-Ⓧ look finished.

Now the price is in the wave Ⓨ. It is assumed that this wave will also have a standard zigzag structure (A)-(B)-(C), as shown in the chart.

The growth of the shares should be expected to 150.24. At that level, cycle intervening wave x will be at 38.2% of actionary wave y.

This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.

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