MoneyPatterns

BABA - Short-term Bearish Entry Before Bullish Continuation

NYSE:BABA   Alibaba Group Holdings Ltd.
I AM NOT ENTERED IN THIS TRADE
Waiting on Weekly view Sell Signal – which will trigger with price below $210.73

Chart Details
Sell Signal on Daily View on 12/30.
Overall chart pattern is bullish breakout of wedge . The next bearish trend will be short-lived.
Trend Dots show next Weekly trend is Bearish .
Exits- Since BABA is overall bullish , I would exit at EMA’s around $190-$200.
$190 would also be good long entry (I will examine further/post if this occurs).

Entry Options
Looking at 1/10 Expiry. Call Credit Spread. 215/220 strikes. Market closed risk/reward looks weird to me. $130 Reward for $380 Risk. POP is 72.5.
Maybe because of high probability of profit the risk is higher as profit is more guaranteed? Not sure. But I prefer 1:1 or better risk:reward.
Must exit before expiry. Hold maybe a week. Exit at 50% profit, gap fills, or your risk tolerance.

About Me
Thank you for liking, commenting, throwing up a chart, following, or viewing.
I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
I am transitioning to my new website https://www.moneypatterns.com and will be updating my username here. Same guy - new name. :)
Website will be ready for launch mid-January 2020. Thank you for your patience while I try to juggle everything and maintain the same standards.
Disclosure - I am long BTCUSD , GBTC . Short term GDX Bullish , SMH Bearish , SPXS Bullish

Comments

I'm longing BABA on a yearly basis and now it'll likely be a long term all-in this year. The primary reason is their incoming split in July, good luck :D
Reply
MoneyPatterns piscitear
@piscitear, BABA is probably the best Chinese investment you could make IMO.
Anything that compares to Amazon in China is going to be good. Plus, I like Jack Ma as a person. Very smart.
Nothing wants a pullback yet LOL.
Good luck to you too. Normally stock split drives price down. Reverse split increase price.
I will have to watch as we get close to July. Thank you for this information.
Reply
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