TheBirdisTheWord

Long opportunity with little risk involved on $BABA

Long
NYSE:BABA   Alibaba Group Holdings Ltd.
We finished a clean three wave zigzag which stopped around 123.6% fib extension. There has been lots of call flows into this name for a while and with the news about the China stocks on the board this seems like a risky play. Based on Elliot Wave theory I am long $BABA and keep adding to my position as long as we stay above the 0.786% retracement zone in the C-wave . Mental stop is somewhere around 260. My target would be at least 306 which offers a great risk to reward from here.
Comment: So far so good. We are keeping the zone for now and we see some positive divergence coming on the 30m timeframe. Keeping this zone is crucial.
Trade active: Well, this aged pretty well so far. Added on weakness, trimmed into strength today.

Leaving from the golden zone with a firm impulsive moves implies (to me though) that this could be the start of impulsive wave 3 which targets for 306 in the short term.

Short term scenario: we need a new cycle high in order to form 5 waves in subwave 1 of 3. Depending on where wave 5 ends, I will wait for a retracement to 0.618% retrace level. Breaking 258 = exit.
I have a few March '21 300 Calls.

Comments

What is date for your target late dec or jan 2021 ?
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Guruoffinance solijons1996
@solijons1996 Jan honestly seems latest in my vision because Biden is going to release alot of the china relationship stressors + vaccines being released in the US catalyst
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Guruoffinance solijons1996
@solijons1996 I see over 320 late Jan and over 290 by late dec
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TheBirdisTheWord solijons1996
@solijons1996, thanks for watching. I added it to the text. My guess would be January. Bought March calls myself.
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the sell off seems to come from the rumor and now more news affirmation is increasing float to allow for building of positions.
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Guruoffinance Guruoffinance
@Guruoffinance the sell off was the 60$ a share snap. now there's instability but resist at our key retest of 260. I built in my 1000 share position with an avg cost at 268 so I'm down on this and remaining patient.
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Guruoffinance Guruoffinance
@Guruoffinance the us would never delist baba.
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TheBirdisTheWord Guruoffinance
@Guruoffinance, think so too. And besides that, it is all relevant in 3 years, not now #LONGBABA
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