Good day Traders and Investors. In today’s article, we will look at the past performance of 1 Hour Elliottwave chart of Alibaba ($BABA). The decline from 06.09.2022 high is unfolding as a 5 swings and made a lower low on 09.16.2022 which created a bearish sequence in the 4H timeframe. Therefore, we knew that the structure in $BABA is incomplete to the downside & should see more weakness. So, we advised members to sell the bounces in 3, 7, or 11 swings at the blue box area. We will explain the structure & forecast below:
$BABA 1H Elliottwave Chart 10.04.2022:
Here is the 1H Elliottwave count from 10.04.2022. The decline from 09.12.2022 unfolded in 5 waves creating a bearish sequence. We were calling for the bounce to fail in 3 swings at red 4 where we like to sell it at the equal legs at $82.67 with a stop at $86.34.
$BABA Latest Elliottwave Chart:
Here is the 10.16.2022 1H update showing the move taking place as expected. The stock has reacted lower from the blue box allowing any shorts to get risk free shortly after taking the position. Currently, the stock has already made a new low in 5 swings and shorts should be out with profits before a bounce can take place in 3 swings at least.