JICPT|BABA momentum accelerated after Jack Ma presence in Europe
Hello everyone. Days ago, I published idea titled 'Will BABA terminate the downtrend line this time?' I listed reasons why BABA got my attention as below:
1. abcd completion with a continuation measured move failure indicated that sellers might be exhausted.
2. Strong bullish engulf candle formation plus gap-up candle created today indicated the third try of penetrating the downtrend line might be different compared to the first two tires.
3.The red downtrend line starting from June 28th, has been respected for 100 days. Time is another issue, yet not so supportive under such circumstance.
You can see how the price rallied from $156 to $181 in a strong mode after the post. Three gap-ups with a steeper angle indicating momentum is accelerating. However, I would recommend not rushing into the bullish trade as trouble zones or levels ahead($186 and $197 respectively).
After directly violated the downtrend line, price has been up by 14% with no pullback. It's too strong and perhaps need a rest to have another leg-out. I would suggest load some shares when price retest lower level say, $164-162. However, I don't know if it can fall that deep. It's always the fear of missing out or fear of loss that we need to deal with.
Actually, I personally loaded some HK tech ETF which have huge exposure to BABA and Tencent, both of whom I'm keen to hold. The setup works every well. I will load more in the coming days. The overall strategy is the more it drops, the more I will buy. Target is at least 30% above as I believe the report of Jack Ma who was said to study agriculture in Spain marked a turn around sign for the company and even the tech sector. I guess the worst moment is over.
What do you think? Give me a like if you're with my view.
1. abcd completion with a continuation measured move failure indicated that sellers might be exhausted.
2. Strong bullish engulf candle formation plus gap-up candle created today indicated the third try of penetrating the downtrend line might be different compared to the first two tires.
3.The red downtrend line starting from June 28th, has been respected for 100 days. Time is another issue, yet not so supportive under such circumstance.
You can see how the price rallied from $156 to $181 in a strong mode after the post. Three gap-ups with a steeper angle indicating momentum is accelerating. However, I would recommend not rushing into the bullish trade as trouble zones or levels ahead($186 and $197 respectively).
After directly violated the downtrend line, price has been up by 14% with no pullback. It's too strong and perhaps need a rest to have another leg-out. I would suggest load some shares when price retest lower level say, $164-162. However, I don't know if it can fall that deep. It's always the fear of missing out or fear of loss that we need to deal with.
Actually, I personally loaded some HK tech ETF which have huge exposure to BABA and Tencent, both of whom I'm keen to hold. The setup works every well. I will load more in the coming days. The overall strategy is the more it drops, the more I will buy. Target is at least 30% above as I believe the report of Jack Ma who was said to study agriculture in Spain marked a turn around sign for the company and even the tech sector. I guess the worst moment is over.
What do you think? Give me a like if you're with my view.
Comment:
I'm moving my support zone a bit higher to the nearest gap-up area. If price pulls back here, it'll be a nice place to load some.
Comment:
Zone has been tested and price got response to it. Gotta check the daily candle for the confirmation.
plan your trade and trade your plan
