BABA has been correcting for some time after it's nice surge. Never mind the trade wars, it's showing healthy correction and possible continuation. We have confluence near this point with the bottom of the channel, major .618 (golden pocket) FIB point. Some signs of possible movement upward are: bullish divergence on the 3D chart, TD sequential at 9 on the downtrend, L-RSI bottoming out, etc. The predicted increase to $200+ would put a profit gain of 30+% on a swing trade.
Trade active:
Opinion remains the same. We are still in the yellow channel and in a solid bounce zone between the .618 and .786 FIB. If we break out of the channel, the next supports I'm looking at are $140, then the 100% retracement FIB (129.77) then finally around $122 to stay in the blue channel. I would like to see a 3D candle print within the yellow channel to begin confirmation that it's bouncing and staying within. If all signs look good, I expect it to fill the gap on the weekly that occured aroun June 18, 2018 around the $197-200 range.
