Monday's 3% thrust in Alibaba Group Holdings (NYSE:BABA), largely in reaction to the company's announcement of a joint venture with Marriott International (NASDAQ:MAR), has the right look of the initiation of a new upleg after the completion of a correction from 160.39 (7/27) to 149.10 (8/02), which if accurate, points BABA toward new all-time-high targets in the vicinity of 163, 166 and possibly 175.
Interestingly, my work argues that BABA's medium-term chart structure exhibits a very bullish "curvature" that is similar in form to Amazon.com (NASDAQ:AMZN) during its Jan. 2017 period prior to its vertical thrust from 780 to 1080.
Earnings are due on August 17. Given the juxtaposition of the chart set-up with the earnings release, I would not be surprised to see BABA climb into, and in anticipation of, very positive earnings results.
