BABA: Bearish signals on chart, despite local enthusiasm
To name a few:
- Yearly MA is trending down and price is below it
- Price is currently under the most frequent price since day 1. This implies the downside is more probable to begin with.
- The have increased midly but it's possible that this isn't the result of an increase in profitability, but debt.
- We have a couple suggesting weakness, since the daily uptrend was broken. We might see a lower high or M top form here.
- Relative strength readings aren't good for BABA.
There's a daily uptrend that has 1 day left and has hit the target, this might be the perfect excuse to short it prematurely before a downtrend clearly forms. I'll update the chart with an entry once ready.
Price right below the main resistance. If it breaks up it migh signal an interesting long.
Looking at earnings key levels below for support:
I might open a long position, will update the chart then.
I'll add to it tomorrow if price action justifies it.
It's possible to see a rally over the resistance soon. Target is 95-105.
Added to long at 82.34, long working well.
Booked partially, and trailed sl to 83.33.
Currently in short.
My initially forecasted general path was respected, just that it took a bit longer to resolve.