Forex Trading Library

BABA Double Zigzags Push Prices Lower!

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Chart of BABA

Just like a few weeks ago, a bearish trend continues to form for BABA.

On the current chart, we can notice the completed actionary wave y and the second small intervening wave x. They are both double zigzags.

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

Perhaps the primary impulse Ⓐ and correction Ⓑ have ended. So we can expect a decline to 48.96 in the sub-wave Ⓒ. At the specified mark, wave z will be 38.2% of wave y.

Chart of BABA

However, we can expect the continuation of the intervening wave x. According to this view, it will take the form of a double zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ. The first two zigzag sub-waves Ⓦ-Ⓧ look finished.

Most likely, prices are in wave Ⓨ, which could take a zigzag structure of the intermediate degree (A)-(B)-(C), as shown in the chart. Impulse (A) and correction (B) look formed.

Stock prices could continue to rise to 140.99. At that level, cycle intervening wave x will be at 38.2% of actionary wave y.

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