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UnknownUnicorn5323213
Feb 12, 2020 1:50 PM

BABA before Earnings 

Alibaba Group Holding LimitedNYSE

Description

BABA is mostly bullish with multiple successful formation exits in the past. Short-term likely to correct towards 200 suggest 7 out of 10 major indicators. The stock has too much empty space at the beginning of the current triangle (marked 'X'), which now requires a second leg. Breaking out above the triangle now would form a double-top crashing the stock later on (rather unlikely to happen). For now the most "healthy" performance is a quick drop towards said target.

Note that the stock's current 'weekly' and 'monthly' suggest a larger downward move towards 170 if 200 doesn't hold. Take a look:

WEEKLY:


MONTHLY:


ADX:


RSI:


Use 199.50 as your marker for a possible further correction (if it drops below).

This post will be updated continuously when mentionable changes can be observed.


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UPDATE: Stock must break 226.70 today to remain bullish, else fall tomorrow as expected.

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UPDATE: With today's daily candle I'd recommend insuring your position. BABA could jump above 230, but retains all negative indications.

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UPDATE: BABA blew out ER with a 46% beat. As long as the stock doesn't 215.30 in next 3 trading days, it could jump towards ATH and beyond.

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UPDATE: Here are a few ways the current triangle could break out or bust:
Comments
Beagleboy3
I have a nibble set for 208.22 and another at 207.52. I also have a larger nibble at 197ish. I don't see BABA breaking 226.70 today, and the +7.50 equates to pure exuberance in my opinion.

D.
UnknownUnicorn5323213
Hi @Beagleboy3, I'm still waiting to see if there's gonna be a run-up to break the prior high before close. Depending on what the stock does I'll add another update 10-15min before close.
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