Alibaba has been trading within a downward channel for last few months, but the structure still looks corrective due to the clear overlaps. Because of that, traders can still watch for a potential turn higher, especially now after a rebound from 147.68 support area, which was also the high back in March 2025. If price can close and finish the day out of a downward channel, as well as above the bullish level at 163.94, then another fifth wave higher could unfold.
At the same time, it is important to keep an eye on 134.35, as a break below that level would question the impulsive trend. Also note the weekly chart, which suggests the market may be in the later stages of wave C, with potential strong resistance later this year near the 78.6% retracement, slightly above the 200 level.
Highlights:
– Overlapping structure suggests the move lower is corrective
– Key support to watch is around 147.68
– Daily close above 163.94 would open the door for wave five higher
– Invalidation sits at 134.35
Below we attached, a snippet from members area, when we called for potential low forming in wave 4 which has proven to be aligned with the market direction as of today!
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