BABA Sells approaching TP 🎯Entry details are shown on the chart.
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Alibaba
$BABA | Double Bull Flag Breakout: Is The Correction Finished? $BABA formed a second bull flag after breaking out of a large descending channel. Watch for a bounce from the bull flag structure retest above $252.
If market weakness continues then we may see a deeper correction as low as $244 (lower blue zone) where we can look for alternative entries.
Initial target is $290 to fill the gap. Secondary is $302 based on structure. Invalidation below $240.
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Alibaba group Accurate forecastAt point 1 you will notice a nice correction pattern that signifies more upside. This is similar to what is happening now at point 2. That is why I expect after the correction at point 2 is completed the uptrend will continue. As the pattern develops i will keep this idea updated, so like, comment, follow so you don't miss any update. Thank you.
ALIBABA Long PositionALIBABA going on a trendline, forming an ascending triangle pattern
Macd and Stochastic showing reversal signs
This stock is considered very undervalued
Taking a rough road due to China-USA tensions, Covid-19 and later the disappearing Jack Ma
We will see probably a breakthrough the resistance level 270 heading to the 310 again.
(We can also see a break on the trendline and the stock falls to his support)
Lets see...
Alibaba appears to be recovering and I think it will continueAfter the Ant Group IPO cancellation caused Alibaba ( BABA ) price to drop for the last two months of last year, the price is apparently recovering this month to the levels where it was before Ant Group announced its plans to float on Shanghai and Hong Kong stock exchanges.
Price is recovering despite the Chinese government probe into Alibaba over alleged anti-competition practices.
Personally I don't think is in China's best interest to kill the goose that lays the golden eggs, so probably this year we'll see some regulation without major impact on Alibaba's business model.
This is all speculation based on news and reports I've been reading for the past month.
ALIBABA Best time to buyPattern: Bullish Megaphone on 1D.
Signal: Buy as the 1D MACD has formed a sequence that since November 2018 designated the bottom. Buy if the Jan 20 High breaks or on the 0.5 Fibonacci retracement level.
Target: 310 (just below the current Resistance).
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Alibaba -how to play this trade with a sea of bad news ?So Alibaba has seen its share of problems in the last months, from intervention from the Chinese government to fear of being delisted in the US from trumps administration in his battle with Chinese stocks to the missing Jack Ma that we still don’t know where he disappeared to ...? a lot of conspiracy theories in that story..
Well with all this mess I choose to look at the technicals and see what they say.
First, we see stock bottomed down to 211$ on Dec 23rd and gave us a new lower low that we can base on. The rise of Alibaba started yesterday on the news that the US will not delist the stock but let's not forget that is NOT what made the stock tumble down but the cancelation of the Chinese government on the IPO of Ant Group and the intent to nationalize both Ant group and Alibaba and of course the missing former English teacher and China’s poster boy for success -Jack Ma.
A lot of bad news and I am here to bet the opposite in the short term (only short term) , from what the chart tells us along with the current sentiment on the stock is that there is a new rise of optimism in the air and the stock will regain some of its loses in the upcoming days to weeks.
The first target for this prediction to come true is a price target of 251$ which will indicate a correction to the 0.618 line, and the fill on the gap of 9$ (241 to 250). If that target is achieved the stock will get more attention and the volume (buzz sentiment) will go up and take the stock to 269$.
At the 269$ I can see we will have a correction downwards back to the 250-255$ line.
We must remember when trading sentiment and fundamental news it's all about what the volume is displaying us as it is a clear mirror to the investor’s behavior.
If we see Alibaba retreating back down to below the 225$ line, then my analysis is disproven and should be ignored!
By the way, on this chart, I used a public analysis tool called the “Bottom down tool”, a great way of seeing if the asset is bottomed down if crosses the 20 line.
This is a high-risk trade and I argue you to do your own DD and keep an eye on the 225$ line to avoid entering too early
Trade safe and a happy 2021 from FDGT!