What we recently saw in BABA was just an up leg that didn't have enough strength to break to the upside, So far we have had four weeks in a row with Lower Highs.
Bulls who rode the uptrend until 120 are still holding on hope ignited by the two uplegs we've had so far, which is a normal behavior, that uptrend was very good (80-120), reality today is that it has not going back, it has still a way to go before it touches the 0.5 Fib retracement around the 100 range and the 120 level seems farther with every drop.
There's no momentum to the upside, and the trend both short and long are pointing down, So any momentum to the downside means lower price levels, and any momentum to the upside means just it's applying the brakes
A sign of recovery would be to break the downtrend channel and to reach a closing price above 110-112. Anything else means either consolidation or downtrend.
Key levels: 110, 106, 103
Bulls who rode the uptrend until 120 are still holding on hope ignited by the two uplegs we've had so far, which is a normal behavior, that uptrend was very good (80-120), reality today is that it has not going back, it has still a way to go before it touches the 0.5 Fib retracement around the 100 range and the 120 level seems farther with every drop.
There's no momentum to the upside, and the trend both short and long are pointing down, So any momentum to the downside means lower price levels, and any momentum to the upside means just it's applying the brakes
A sign of recovery would be to break the downtrend channel and to reach a closing price above 110-112. Anything else means either consolidation or downtrend.
Key levels: 110, 106, 103
