BABA: We are waiting for the market to collapse to 49.00

The BABA structure hints at a bearish corrective trend taking the form of a cycle triple zigzag w-x-y-x-z.

We see a completed actionary wave y, which has the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ, and a second small intervening wave x, which is also a double zigzag.

Now the formation of the final actionary wave z is taking place, which, most likely, will take the form of a primary standard zigzag Ⓐ-Ⓑ-Ⓒ.

The primary wave Ⓐ has the form of an impulse (1)-(2)-(3)-(4)-(5), for the completion of which a minor sub-wave 5 is needed. Its end is expected near 49.00. At that level, unfinished wave z will be at 38.2% of wave y.

An approximate scheme of possible future movement is shown on the chart.

The second chart hints that the formation of the cycle intervening wave x is not completed. Here it 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 take a standard zigzag structure of the intermediate degree (A)-(B)-(C), as shown in the chart.

The growth of shares should be expected to 140.81, that is, above the previous high of 126.39, which was marked by wave Ⓦ. At the level of 140.81, cycle intervening wave x will be at 38.2% of actionary wave y.