Alibaba: Turning Point

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BABA was pulled down further last week. According to our primary scenario, it should now be in the final stages of the blue wave (a). As soon as the low is reached, we expect a (corrective) rise in the form of blue wave (b) before a further sell-off completes the magenta-colored wave (ii). Only with the correction low underfoot should the same-colored wave (iii) then drive the price above the resistance at $117.79.

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