While BTC is doing its own thing, I decided to take a look at my stocks portfolio. Figured it was about time for a reevaluation. Today we'll explore BABA!
BABA has been on an unstoppable climb since June of 2016. Remember that I keep emphasizing the fractal nature of price movements. Let's scroll back into a 1W chart to see where we are since the last low we hit (yellow triangle), we can see a classic Elliott Wave forming. We can see from the relatively slow and low sloped wave 1-2, a sharp drop from Wave 3-4 was expected and fulfilled. This on top of the last ATH gives me confirmation that we've officially hit Waves 1-2-3-4-5 and have entered the correction wave, and currently riding towards the peak of Wave B (purple triangle).
My expected target of wave A-B-C is to eventually hit the level at around where Wave 4 ended, which just happens to fall around the 23.6% retracement zone.
Because we've entered a correction wave, BABA is now more sensitive to the rest of the market. It would be difficult to make a call on where this will flow after so I'll be sure to watch this closely through its retracement towards $170.
This is the time when the 40 thieves are about to chase us down so close that cave until we can open sesame again in the future.
Comment
⋅
We may have reached the peak of B, here comes C. (should go without saying but wave drawings are obviously not to be taken as timestamps - just showing you general movement pattern).