As the trade war is maturing between the two giants, the U.S. and China, the real effect is starting to kick in. After postponing this week's meeting and not announcing a particular date for further negotiations, Chinese companies seem to be hopeless in the U.S. market...
BABA was badly hit back in May. In fact, May was the month in which BABA said a goodbye to the +200.00 channel. The stock bottomed around 150.00 - 155.00 level and it started to move back up one more time. Yet, I think it's gone ahead of itself and despite being hopeless from China-U.S. negotiations, I think it is heading down again. After reaching ~185.00 few days ago, the formation of an ascending wedge is now completed. The pattern is bearish and a downward breakout seems just more likely due to a decreasing bullish momentum. Both MACD and AO are signifying this. Furthermore, a shooting star candle pattern is apparent right before the price turned down to touch the bottom boundary of the wedge. Just today, we got a thick dark candle which potentially confirms the reversal.
For now, I hold no positions in BABA, but will go short if the circumstance permits.
Cheers...!
BABA was badly hit back in May. In fact, May was the month in which BABA said a goodbye to the +200.00 channel. The stock bottomed around 150.00 - 155.00 level and it started to move back up one more time. Yet, I think it's gone ahead of itself and despite being hopeless from China-U.S. negotiations, I think it is heading down again. After reaching ~185.00 few days ago, the formation of an ascending wedge is now completed. The pattern is bearish and a downward breakout seems just more likely due to a decreasing bullish momentum. Both MACD and AO are signifying this. Furthermore, a shooting star candle pattern is apparent right before the price turned down to touch the bottom boundary of the wedge. Just today, we got a thick dark candle which potentially confirms the reversal.
For now, I hold no positions in BABA, but will go short if the circumstance permits.
Cheers...!
Trade closed: target reached:
Entry: ~176.66
Exit: ~164.26
Profit: 7.549%
Exit: ~164.26
Profit: 7.549%
