Elliott Wave view in Alibaba (Ticker: BABA) suggests the rally from 12/24/2018 low is unfolding as an impulse Elliott Wave structure where wave ((3)) ended at $159.49. Wave ((4)) pullback ended at $150.17 as a double three Elliott Wave structure. Down from $159.49, wave (W) of ((4)) ended at $154.20 and rally to $157.02 ended wave (X) of ((4)). Afterwards, decline to $150.17 ended wave (Y) of ((4)).
Near term, Rally from $150.17 low is currently unfolding as a 5 waves with a nest. Wave (1) of ((5)) ended at $155.18 and wave (2) of ((5)) ended at $150.51. Near term, while pullback stays above $150.17, expect Alibaba to extend higher within wave ((5)).
Alibaba still needs to break above wave ((3)) at $159.49 to confirm the wave ((5)) higher has started. Until then, it can do a double correction in wave ((4)) before the rally resumes. Alternatively, it can also already end 5 waves up from 12/24/2018 at $159.49. In that case, then the stock can start to correct cycle from 12/24/2018 low in 3, 7, or 11 swing.
It’s worth to keep in mind that in the larger time frame, we see a lower low sequence from June 5, 2018 high which technically favors more downside. In the most bearish case, Alibaba can already end the 5 waves move higher from 12/24/2018 low as internal of wave c Running Flat. In this scenario, the stock can start resuming lower again.
BABA 1 Hour Elliott Wave Chart
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