Forex Trading Library

BABA Primary Correction Triangle or Triple ZigZag?

0 2,733

The current BABA structure shows the formation of a bullish impulse V of a cycle degree. Primary sub-waves ①-②-③-④-⑤ make up the said impulse.

Impulse wave ③ is complete and the construction of a horizontal correction wave has begun ④. There is a possibility that this correction will have a triangular formation.

Currently, intermediate wave (A) is fully complete. We could expect a rise in the intermediate wave (B) towards 292.91. At that level, wave (B) will be at 76.4% of (A).

After the end of the triangle, prices could rise in the primary wave ⑤.

baba elliott

An alternative scenario shows the bearish correction wave ④ being a triple (W)-(X)-(Y)-(X)-(Z) zigzag.

The second intervening wave (X) of the intermediate degree, could soon complete its pattern.

After the successful end of wave (X), we could see the stock depreciate in the final intermediate wave (Z) to the 206.60 area. At that level, it will be at 76.4% of wave ③.

Got your risk management sorted? Open your account now!

Leave A Reply

Your email address will not be published.