On January 5, we saw BABA breakthrough 40 DMA with conviction
Has continued to test this followed by a hard bounce
We may see October 3 gap fill in the 174s area
Many catalysts coming up through November (Investor's conf, singles day, ER)
Would suggest late November options calls
$Baba is looking setup to run into earnings.
Considering loading up on calls.
Earnings date is 11.02
The report will be for the fiscal Quarter ending Sep 2017. According to Zacks Investment Research, based on 5 analysts' forecasts, the consensus EPS forecast for the quarter is $0.84.
Idea>>
BABA closed below EMA50 1H chart.
Price first target 177.86 second 175.75$ closing below may lead price to test 173.63$ (0.618Fib) completing the forth wave on the expexted pattern on daily chart.
GL.
With the fact that BABA has ran up so much this year and the political uncertainty surrounding the potential breakout of major war could bring this down quite a bit. The short trade is something I am considering and will update if I enter a position.
Feel free to comment on this analysis if you have any ideas.
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