BABA update 11/12

BABA: either intermediate iv or major 4 is bottoming soon. Major 4 retrace is ideally at $90.5ish while the blue and green dotted uptrend lines need to hold support. Possible positive divergence is developing on the daily RSI5, while the other TIs are oversold. Once the + div has been confirmed this is a nice risk/reward level to enter for a long.


We prefer the intermediate iii, iv count as price hit the 138.2% extension and is now at the 76.4% retrace. those are typical for 3rd and 4th waves. this means we should see intermediate v hit $120s. There’s a gap at $88, which may get filled first. A break below that level and our alternate count (abc’s is operable). Hence going long on + div allows for a clear stop loss level to set: $88 to $86. with $120 as a target thats a few dollars risk vs $40 upside potential 🙂