BABA Primary Zigzag Weighs Heavy

The current BABA formation suggests the construction of a primary degree zigzag.

In November last year, an impulsive wave Ⓐ formed. This was followed by the development of a bearish correction wave Ⓑ.

It is likely that the correction Ⓑ will be a simple zigzag, which could soon come to an end. It is likely to end near 166.34. At that level, intermediate impulses (A) and (C) will be equal.

 

However, there is a possibility that the construction of the primary corrective wave Ⓑ has already reached the final stage. As in the main version, the correction is a simple zigzag. However, the intermediate impulse (C) is shorter than the intermediate impulse (A).

Thus, if this hypothesis is correct, then in the short term we could expect the development of the initial part of the impulse wave.

Waves (1) and (2) could have already ended. Therefore, an increase in prices within the intermediate third wave is likely. This could be above the price level of 274.10, at which the correction (B) was completed.

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