$BABA UPDATE

Obviously yesterday was a fantastic day for $BABA as we have shown just how powerful EWT and Fib levels combined can really help us find entry points and capitalise on it. 

Firstly, the Subwave 2 in green was shallow but still valid as it has 3 waves and touched the 0.38 Fib, the news dropped about $BABA splitting into 6 parts and this was perfect then for Subwave 3 and amazingly, it ran all the way to our Subwave 3 target and stopped.

RSI on the 1 HR is at 88 now, so this will need to pull back and Subwave 4 is next so this makes sense, so we should expect to see this shortly.

I have added in the full count structure and as always, once we get Subwave 5, we will expect to see an ABC count, on that pull back, when it is complete, it is a good spot to add, I will continue to update this every day so we are prepared.

These counts, although have been perfect lately, they are a reference, they can go higher or lower than what I have shown but as we know, waves move into zones and can be shallow or deep. Buy or sell where you feel comfortable, especially if you intend to buy for long term, traders need to be more specific. 

I have stayed in my position, in spite of a pull back needed, I will look to add when I see Subwave 4 complete and will assess again at Subwave 5.

Just as a note, I added the daily chart underneath, if you look at the RSI there, you can see that, the moment the RSI went above 30, it took off, after a good pullback beforehand and holding at the 0.65 Fib, this was all the indications I needed that this was due a bounce and why I started a position.

The RSI should be starting from the bottom, even more preferably at 30 on the daily. You can not expect to see a bull run when the RSI is already at 70, at the overbought territory....and that is why we have seen the Mega Cap stocks pull back lately.