BABA bounced back toward the 50-day MA, but it was too weak to break it, signaling there is no momentum in this move. In the last several days, and today also, BABA formed a lower high and lower low, signaling a new downtrend.
Furthermore, BABA dropped out of the bear flag, signaling it is going down again. Sell, sell, sell. RSI did recover nicely and is now in the middle, while MACD is already pointing down, signaling more pain in front of the bulls.
It is very likely BABA will drop into the support box of 60-66 and will find long-term support in this area. This area has been a support since 2016, last year, and could or should act as support yet again.
There is almost no chance for bulls to recover from this situation, especially as China is in a huge economic problem, while at the same moment, the USA stock market is at its extreme and in overbought territory.
For bulls, their chance is that BABA must close above the 75.20-75.5 area today to avoid a lower low and to stay inside the bear flag and start to move up as soon as possible with huge volume.
It is almost certain I'll be under attack now, but this is a game of odds and probabilities and is not a game of being in love with a stock or any other asset. Profitable traders trade according to their own trading rules, while others trade according to their fear and greed.
Good luck to all.
Furthermore, BABA dropped out of the bear flag, signaling it is going down again. Sell, sell, sell. RSI did recover nicely and is now in the middle, while MACD is already pointing down, signaling more pain in front of the bulls.
It is very likely BABA will drop into the support box of 60-66 and will find long-term support in this area. This area has been a support since 2016, last year, and could or should act as support yet again.
There is almost no chance for bulls to recover from this situation, especially as China is in a huge economic problem, while at the same moment, the USA stock market is at its extreme and in overbought territory.
For bulls, their chance is that BABA must close above the 75.20-75.5 area today to avoid a lower low and to stay inside the bear flag and start to move up as soon as possible with huge volume.
It is almost certain I'll be under attack now, but this is a game of odds and probabilities and is not a game of being in love with a stock or any other asset. Profitable traders trade according to their own trading rules, while others trade according to their fear and greed.
Good luck to all.
Comment:
Consistency is the key of success....
Perfect trades in BABA!