Alibaba Group Holding Limited (NYSE: BABA) is a Chinese e-commerce company that provides sales services via web portals. It also provides electronic payment services, a shopping search engine and data-centric cloud computing services. Alibaba is one of the largest Internet companies as its online sales & profits surpassed all US retailers (including Walmart, Amazon and eBay) combined in 2015 and it now considered as the world’s largest retailer surpassing Walmart.
Alibaba Shares recently managed to make new all time highs after breaking above 2014 peak $120 and investors are still looking for more gains to come. Let’s jump into the Elliott Wave technical analysis to see how bullish is it ?
BABA Double Three Structure
Since 2015 low, BABA started trading in 3 waves move to the upside which currently is forming 5 swings sequence with divergence which we consider as an incomplete bullish sequence as part of a double three structure. So according to the swing structure , the stock is ending the 5th swing around equal legs area $120 – $125 from December 2016 low and it should then pullback in 3 waves against 86.01 low. The 6th swing pullback should ideally hold above the bullish channel to be able to resume the rally toward equal legs area $138 from September 2015.
BABA Double Three 05.11.2017
BABA Leading Diagonal Structure
The second scenario for BABA would be represented when the pivot at $86.01 low gives up later on, which will mean the stock has ended the cycle from from September 2015 low and in that case it can be counted as a leading diagonal because it has 5 corrective waves holding the divergence. Consequently , the correction can extend toward $90 area and take longer time before the stock resume the move to the upside.
BABA Leading Diagonal 05.11.2017
Recap:
Alibaba Shares ( BABA ) has a daily bullish structure suggesting more upside in the future. However currently the stock has reached the extreme area $120 – $125 from December 2016 low so no matter which scenario will play out there will be a 3 waves pullback before buyers starts showing up again. Depending on the speed & structure of the correction we’ll know exactly which cycle has ended and where & when will be the ideal area to look for buying opportunities.
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 © leg. Buying zone is already reached at 140.82 , however we see possibility of another wave down to complete 5 waves in © 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.
Short term Elliott Wave view of Alibaba (BABA) calls for the rally from Dec 24, 2018 low ($129.1) as a 5 waves impulse Elliott Wave structure. Up from there, wave ((1)) ended at $142.51 and wave ((2)) pullback ended at $129.99. Wave ((3)) rally ended at $153.35 and wave ((4)) pullback is proposed complete at $146.54. The stock still needs to break above wave ((3)) at $153.35 to avoid a double correction.
As an Impulse, internal of wave ((1)), ((3)), and ((5)) subdivide in 5 waves of lesser degree. Within wave ((3)), we see the lesser degree Impulse in wave (1) at $131.15, wave (2) at $130.05, wave (3) at $147.54, wave (4) at $142.06, and wave (5) at $153.35. Wave ((4)) pullback ended as a double three Elliott Wave structure, where wave (W) ended at $148.88, wave (X) ended at $153.38, and wave (Y) ended at $146.54.
Near term, expect Alibaba to extend higher in wave ((5)) while it stays above $146.54. Potential target wave ((5)) can reach as high as $160 - $163 area when wave ((5)) = ((1)). Afterwards, cycle from Dec 24, 2018 should end and Alibaba can pullback to correct that cycle in 3, 7, or 11 swing.
Alibaba (BABA) 1 Hour Elliott Wave Chart
