BABA stock: Found sellers at the blue box area
Hello fellow traders. In this technical article we’re going to take a quick look at the Elliott Wave charts of BABA Stock published in members area of the website. As our members know, the stock has recently made a recovery that found sellers right at the blue box area. Our team recommended members to avoid buying the stock , while keep favoring the short side. BABA found sellers and made reaction from the blue box as expected. In the further text we are going to explain the Elliott Wave Forecast and trading strategy.
BABA Elliott Wave four hour chart 02.06.2024
BABA is currently giving us (4) blue recovery which is unfolding as Elliott Wave Zig Zag Pattern. The price structure looks incomplete at the moment. We expect to see more short term strength toward 80.13-85.77 equal legs ( Blue Box – sellers zone). We don’t recommend buying the stock and prefer the short side from the blue box. As the main trend is bearish, we expect to see at least 3 waves pull back from our selling zone. Once decline reaches 50 Fibs against the B red low , we will make short position risk free ( put SL at BE) and take partial profits. Invalidation for the short trades is break above 1.618 fib ext : 85.77.
BABA Elliott Wave four hour chart 02.15.2024
The stock found sellers right at the Blue Box area : 80.13-85.77 . Recovery completed at the 82.7 high and we got good reaction from the selling zone. Decline reached and exceeded 50 fibs against the connector’s low. So members who took the short trades are enjoying profits now in a risk free positions. While below 82.7 high, next leg down can be in progress toward new lows.
