Alibaba Wave Analysis 5 January 2024

– Alibaba reversed from resistance level 78.00

– Likely to fall to support level 70.30

Alibaba recently reversed down from the pivotal resistance level 78.00 (former multi-month support from May of 2023).

The resistance level 78.00 was strengthened by the upper daily Bollinger Band and the 50% Fibonacci correction of the downward impulse from December.

Given the persistent daily downtrend, Alibaba can be expected to fall further to the next support level 70.30 (which stopped the previous wave 3 at the start of December).