AndrewAponas
Short

Minor Bearish Pullback | Andrew Aponas

NYSE:BABA   Alibaba Group Holdings Ltd
To be clear and not to send off too many alarms this is a bearish trade idea for the next two to four candles. I think price is going to pullback here, it could happen with one trading session or a handful. Looking at this chart I have seen that historically it will gap up with above average volume , or a volume spike and usually retrace afterwards before continuing bullish . I think the current price action is set up for a textbook pull back, price gapped up with above average volume , closed as a doji on declining overall volume . The last trading session also closed as a Doji which means the buyers are trading into resistance. Price is directly below a major pivot point which is overlapping the .236% Fibonacci level right now, in my opinion looking at this framework there is going to be a lot of bearish sentiment in the market for the current condition of price. Looking at this in a longer term picture, price is forming an Inverted Triangle chart pattern and also diverging bearish on the RSI , a correction or reversal I think is in store for BABA on the intermediate or primary level. Thank You, God Bless.

BOP over the past 2 months there has been a lot more selling going on then buying marked in the blue box, I think this may suggest the Insiders are distributing their position.
RSI I have sped up and have quite a bit going on, one the bearish divergence is marked with the transparent blue line, I have a historical pivot point also drawn through the upper half of the indicator, as well a break point signal line drawn right below it. I will use this as confirmation, if this signal line breaks as well as the pivot point my sentiment will be bullish , if the RSI fails to break these lines and pivots bearish my sentiment in turn will also be bearish .

These articles explain the most recent bullish wave, and also may suggest price will open up to start making a high in the morning before reversing, if it is going to trade into a bearish pullback.
https://finance.yahoo.com/news/risks-abound-alibaba-group-holding-183152748.html
https://finance.yahoo.com/m/abd6befd-044a-3b0d-8a8e-aaa851836c1a/alibaba-is-reportedly.html
https://finance.yahoo.com/news/alibaba-ups-ante-connected-cars-133601273.html
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