The 1H timeframe shows a bearish trend is forming for BABA shares. Currently, the actionary wave y and the second small intervening wave x ended as double zigzags.
The formation of the final actionary wave z will take the form of a primary zigzag Ⓐ-Ⓑ-Ⓒ.
There is a high probability that the primary impulse Ⓐ and the correction Ⓑ have already been completed. So, we can expect a decline to 49.60 in the sub-wave Ⓒ, consisting of sub-waves (1)-(2)-(3)-(4)-(5). At the specified mark, wave z will be at 38.2% wave y.
And what if the formation of the intervening wave x has not yet been completed?! Alternatively, only the first two zigzag sub-waves Ⓦ-Ⓧ look finished.
Now the market is in a 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.
Bulls in the intermediate wave (C) can reach the 140.81 area. At that level, cycle intervening wave x will be 38.2% of actionary wave y.
