TWLO, INTC, BABA updates 10/23

TWLO: continues to count best as 5 waves up and 3 down. Preferred view is that minute-v of minor-1 of intermediate-iii topped this morning. Ideally minor-2 should bottom around $30-$31 again. A 2.00x 1 relationship for minor-5 (all of intermediate-iii) then targets the 1.382x extension of intermediate-i, from ii (lower edge of red target zone). From a pure technical S/R perspective, a break over the black S/R zone ($35) targets $47 (23->35=12, 35+23=45), which fits well with the intermediate-iii target zone. Alternative is that wave-iii is only a c-wave, but for now we’ll keep the impulse until proven otherwise.

TWLO

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INTC: Counts best as wrapping up its (grey) minute-v of (green) minor-3. Note the negative divergence forming on the RSI5 (higher prices, but current RSI5 reading is now lower than a week ago). Green minor-4 should iudeally drop back to the 100% Fib-extension, but since the 1.618x extension was surpassed, the 1.14 to 1.236x extensions may now provide support at around $38.5 +/- 0.50c.

intc

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BABA: Let’s take a look at the weekly and monthly charts. First up the weekly. What’s very obvious is the negative divergence on the RSI5 (red arrow): higher prices at less and less momentum. My preferred count has a (green) minor-3 top at $185 with minor-4 now underway to ideally $147.5-$160.0 (which is  good S/R level).

The alternate is that all of (black) major-3 already topped (two wave degrees higher than the minor-wave). This would mean that the upcoming correction will be more severe targeting as low as $125-$140. However, based on the monthly chart (cont’d below)…

baba weekly

I prefer to count the current wave up as minor-3. There’s simple not been a red-month since December 2016 suggesting all of the advance since then is one wave IMHO. Also, the monthly RSI5 is max overbought, which is indicative of a 3rd of a 3rd wave: minor-3 of (red) intermediate-iii. Based on the monthly candles, there’s support between $160-$150 which fits very well with the S/R found on the weekly chart. BABA is expected to report earnings November 2 before the openings bell and for those who are long, some short/put protection may not be a bad idea and/or partial selling of positions (it is never wrong to take [partial] profits!)

baba monthly