BABA oversold and ready for rebound

BABA has been pulverized over the past few weeks. I believe the attacks by the Chinese government should relent and that there has been an overreaction of selling based on this short term negative news. Looking at the chart we see extreme support in the high 40's, which is where I will put a stoploss, and RSI is showing that this selling is completely unsustainable. Combined with the financial performance of the company and US companies' eye watering valuation, I think there is an argument that BABA is currently undervalued.

I am in at $156.30 and expect this to be back over $200 in the next few months. Do your own DD, this is not financial advice.

Comment:

I closed my shares at $172.87 the next day and have re-entered at $166.38. I think I should have waited as that large 5% gap up overnight likely needs to be filled before we continue higher. I might cut my losses and wait to go back in long, not sure yet.

Today I noticed an extremely large amount of volume at close and in the minute after close which would suggest someone big is getting in. I am going to hang on to my shares overnight in the hopes of another gap up.

Comment:

I doubled down at $159, just closed positions at $168.5 this morning. I'm going to see what happens to BABA next there is a strong possibility it hits $135 or $200 next but I want to see which direction it breaks in and follow through.