cryptcommander

BABA - Hidden BULLISH Divergence!

Short
NYSE:BABA   Alibaba Group Holdings Ltd.
Hidden Divergence = continuation trend for the bulls, with a MACD bull cross as a kicker. BABA looks primed to continue it's lucrative run for the near future.
Comment: Short =short term, not short the stock!

Comments

I'm a little confused about your analysis. On your chart you are looking at indicators and seemed to be bullish but yet your position says you are looking to short. Personally, BABA looks like it's getting ready to reverse and decline in the near term. It's at key resistance and showing divergence. Look at your MACD. You've got a head and shoulders reversal pattern forming.
Reply
cryptcommander BluePipSquad
@BluePipSquad, Good catch! Clicked short by mistake. It is a bullish play. The Divergence is hidden, which is a continuation not a reversal. The Key resistance is higher, around $290 in my opinion. $275-285 is a low volume node. Although it is near the bottom, MACD is crossing up past the signal which is bullish, not sure what you are referring to there. Forming head and shoulders - it would need to play out in the 260 range to complete that pattern. If the hidden bullish divergence plays out over the next week or 2 it wiil negate that pattern.
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BluePipSquad cryptcommander
@cryptcommander, This is what I mean. You see how it is dropping? There's the head and shoulders and divergence on the H1 and you missed the bear flag.
Reply
cryptcommander BluePipSquad
@BluePipSquad, Thank you! I see what you mean there. My opinion, I feel that bearish divergence has already played out. You are correct about the bear flag. That is something to watch for sure.
Reply
BluePipSquad cryptcommander
@cryptcommander, Yeah man no problem. I think your perspective is longer term, that's the difference. There's a longer term support/trendline at 240. I put a more conservative target at 250 for the short. I think if price drops to that level it will likely hold support and continue back up bullish as you were predicting. This is a counter trend reversal play so we can both be right.
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