Hey everybody! In at this time’s article, we’ll evaluate the current efficiency of Alibaba Group. ($BABA) via the lens of Elliott Wave Idea. We’ll evaluate how the rally from the Jan eighth 2026 low unfolded as a 5-wave impulse adopted by a 3-swing correction (ABC) and talk about what may come subsequent. Let’s discover the construction and the expectations for this inventory.
5 Wave Impulse Construction + ABC correction
$BABA 1H Elliott Wave Chart 1.18.2026:
Within the 1H chart from Jan 18, 2026, $BABA accomplished a transparent 5-wave impulsive cycle labeled pink 1. After such a transfer, a corrective pullback is typical. As anticipated, the inventory started to retrace in three swings, forming what we determine as an ABC correction.
The value motion urged that patrons would doubtless seem close to the excessive space between $166.53 and $162.31. This zone represents the perfect area the place a correction often ends and a brand new bullish cycle begins.
In different phrases, the market took a quick pause earlier than probably resuming its main uptrend. Due to this fact, this construction aligns properly with a regular Elliott Wave correction, providing merchants a technical roadmap.
$BABA 1H Elliott Wave Chart 1.22.2026:
Few days later, the inventory bounced and made new highs confirming the bullish pattern. At present, it’s seeking to stay supported towards 1/20 low and better in wave 3 of (3). Longs ought to be danger free and in search of $190-207 space as the following potential goal.
Conclusion
In conclusion, our Elliott Wave evaluation of $BABA suggests the inventory continues to commerce inside a bullish framework. By utilizing Elliott Wave Idea, merchants can higher anticipate market construction, determine continuation zones, and plan trades with larger confidence.
As well as, understanding how impulse and correction phases work together helps enhance danger management, particularly in risky markets like this one. Due to this fact, sustaining flexibility and self-discipline stays key as this construction evolves.