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showmethat
Jun 18, 2021 8:03 PM

BABA setup Long

Alibaba Group Holding LimitedNYSE

Description

The fundamental for the company is still bullish.
* News of customer data leak didn't send this crashing down and historically the market is relatively tolerable towards data leaks .
* All regulatory fines are settled and Jack Ma's lack of presence is at least indicative that he acknowledges a positive correlation between BABA's success and his attitude towards the CCP.
Inflationary risks also seem much less of a concern in China vs. US.


The technical buildup is also interesting.

* Nearing the apex of this falling wedge
* In the Historical Buy Zone (long term supporting trendline/zone)

It's also worthy to point out RSI behaving interestingly with BABA at weekly views, with successful entry setup seen at RSI < 35 indicated by green arrows, and riskier but would have been successful setup seen at RSI < 40 indicated by yellow arrows.


Position: TBD
Waiting for confirmation of close above the upper line of the falling wedge in the daily chart

Comment

I had entered two days ago pre-emptively after considering risk.
A bit concerned about the gap so I may only ride this out for a very short play and look to re-enter later.

Comment

Reinforced position here at 210

Comment

Looks like I entered prematurely. The gap down at PM today is reaching close to my stop loss.
Comments
showmethat
Position reinforced here at 210
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