BEAR CASE
Main Points:
1) Stoch RSI is nearing overbought
2) ABC correction = 3-3-5 Flat
3) 0.786 retracement of previous full wave = 201
4) Equal legs target of Wave A = Wave C = 214.50 (exceeded)
5) previous support level @ 203
6) confluence of previous support and fib resistance levels at 200-205
Inference:
BABA is in a downtrend wave 5 which will complete the ABC correction from Oct high of $318 to the 0.786 fib/previous support around 201-205
Counter Points:
1) MACD is moving bullish not bearish
2) RSI is is just crossing from oversold levels with lots of room to go
Main Points:
1) Stoch RSI is nearing overbought
2) ABC correction = 3-3-5 Flat
3) 0.786 retracement of previous full wave = 201
4) Equal legs target of Wave A = Wave C = 214.50 (exceeded)
5) previous support level @ 203
6) confluence of previous support and fib resistance levels at 200-205
Inference:
BABA is in a downtrend wave 5 which will complete the ABC correction from Oct high of $318 to the 0.786 fib/previous support around 201-205Counter Points:
1) MACD is moving bullish not bearish
2) RSI is is just crossing from oversold levels with lots of room to go
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.