BABA Forecasting The Rally & Buying The Dips

Hello fellow traders.  Another instrument that we have been trading lately is BABA Stock from Group 3. In this technical blog we’re going to take a quick look at the Elliott Wave charts of BABA, published in members area of the website.  As our members know, BABA has been correcting larger cycle from the 59.5 low. We expected the stock to find buyers in 3,7,11 swings due to previous bullish trend.  Consequently, we advised members to avoid selling it  and keep on buying the dips in the sequences of 3,7,or 11 swings whenever get chance. In further text we’re going to explain Elliott Wave Count and Trading Setup.

BABA Daily Elliott Wave Analysis 10.13.2018

Current Elliott Wave analysis suggests BABA is correcting the cycle from the 59.5 low.  Pull back seems to be unfolding as Elliott Wave Zig Zag Pattern, when we can still be in wave (c)  leg.  Buying zone is already reached at 140.82 , however we see possibility of another wave down to complete 5 waves in (c) leg.  Although we expect move down, we don’t recommend selling BABA against the main bullish trend. Strategy is buying the dips at marked extremes : 140.8-130.0 area. As the main trend is bullish, we expect to see reaction in 3 waves up from the blue box at least. As soon as the bounce reaches 50 fibs against the (b) blue high, we will make long positions risk free and let the profit run.


BABA 4 Hour Elliott Wave Analysis 11.15.2018

Eventually BABA has given us another wave down as we forecasted. Buyers have appeared shortly after and we got turn higher. Now calling pull back completed at 130.03 low. Bounce has reached 50 Fibonacci retracement against the (b) blue high. As a result members who took long trades are now enjoying profits with risk free positions. Recently we got break of November 2nd peak, which means  we should ideally get further extension higher, confirming next leg up wave (3) is in progress.

Note: Market is dynamic and presented view could have changed in the mean time. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.

BABA 4 Hour Elliott Wave Analysis 11.15.2018