BABA Elliott Wave View: Found Buyers in Blue Box and Rallied

Hello fellow traders. Today, I want to share some Elliott Wave charts of the BABA stockwhich we presented to our members in the past. Below, you see the 1-hour updated chart presented to our clients on the 03/28/19. showing that BABA ended the cycle from 03/07/19 low (171.55) at the peak of 03/19/19 (183.48) in red wave W.

Below from there, we advised members that the pullback in red wave X ended at 173.59 low. Above from there it did the first leg higher in 5 waves of blue wave (a) which ended at 180.57 peak. Then below from that level, we said to our clients it should see the equal legs from 03/26 peak towards the areas of the 100 – 1.618 Fibonacci extension of the red wave w-x which came around 176.24-174.02. Therefore, we expected buyers to appear in the sequences of 3, 7 or 11 swings. And that was the first area for buyers to appear to take prices to new high above 03/19/19 (183.48) peak. Or a larger 3 waves bounce at least. As BABA entered the blue box it reacted quite aggressively to the upside.

BABA 03.28.2019 1 Hour Chart Elliott Wave Analysis

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In the last Elliott Wave chart, you can see that BABA continued the strong reaction higher and rallied like expected to new highs. Above red wave W peak. Due to the turning up tag, we expected BABA to be supported overall in the 1H timeframe. If traded our blue box. Any trades from that area have been risk-free, which means the stop-loss was moved to breakeven, targeting higher levels.  Do please keep in mind that the 1-hour chart which I presented might have changed already. The blue boxes you see in our charts are our so-called High-Frequency boxes. Where the market ideally shows us a reaction either lower or higher. These areas are used be traded in the direction of the right side.

BABA 04.01.2019 1 Hour Chart Elliott Wave Analysis

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I hope you liked this blog and I wish you all good trades.