The BABA structure hints at a bearish corrective trend taking the form of a cycle triple zigzag w-x-y-x-z.
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.
The primary wave Ⓐ has the form of an impulse (1)-(2)-(3)-(4)-(5), and the correction Ⓑ takes 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 50.75. At that level, primary impulse wave Ⓒ will be at 161.8% of impulse Ⓐ.
The second chart hints that the formation of the cycle intervening wave x continues. 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 (A)-(B)-(C), as shown in the chart.
The growth of the shares should be expected to 149.02. At that level, cycle intervening wave x will be at 38.2% of actionary wave y. The nearest target for opening long positions is a maximum of 126.39, where the end of the first intermediate impulse (A) is expected.
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.