Monday, April 9, 2018

Triple Screen Analysis on BABA

So this is meant to be more of a thought experiment

Let's take a look at this post in a few days, BABA is trading down relatively, on the week, and even this week so far has shaped up to be mediocre. Because of today's and this week's action, I suspect that a technical bounce would come off the 50 period simple moving average here on this first chart, it may even reclaim 175-177 when the market opens again

It trades up because of the Chinese comments. One set up in a resist point that will reveal itself tomorrow, but its fair to price in about a 2% bounce

I need to see how this pans out.

This is a weekly chart.



This is the daily chart with the zone where I anticipate it to trade (ADRs trade during American trading hours) it is also in line with the 50 simple moving average; and a great alignment of the two price points


Lastly we have the 4 hour chart



Its definitely primed to overcome the 50-period simple MA, and from this point of view, it would look like a gap up into the over head resistance area between 180 or higher could spell trouble if it doesn't hold and close above that hurdle 

Overnight gaps exaggerate and tend to burn out quickly in bear markets, the phase we are in is crucial now because we can either reverse and go higher or continue the moves down, which technically BABA is deeply oversold but for now I thought I would keep the momentum going in terms of showcasing bullish set ups that have a strong chance of working .   

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