Alibaba -BABA -Daily - Range Expanding Up from a base
It looks like BABA is trying to form a bottom here with a THIRD attempt to range expand off of the bottom of the range. It looks like it could be short-covering, but sometimes short-covering is what makes a bottom.
I think the trade here is to buy in several pieces: First here and second on the pullback to the middle of today's "upward-movement range" (From yesterday's close to today's high is the "upward movement range"). The third buy could be after the second entry in a few days if it is holding above the second entry. And lastly a purchase if it exceeds the current entry price (currently 85.06 last).
It looks like earnings are due at the end of this month. You can cut the position prior to earnings to avoid the excessive movement that can occur on earnings release days.
Tim 2:15PM EST, April 8, 2015
I think the trade here is to buy in several pieces: First here and second on the pullback to the middle of today's "upward-movement range" (From yesterday's close to today's high is the "upward movement range"). The third buy could be after the second entry in a few days if it is holding above the second entry. And lastly a purchase if it exceeds the current entry price (currently 85.06 last).
It looks like earnings are due at the end of this month. You can cut the position prior to earnings to avoid the excessive movement that can occur on earnings release days.
Tim 2:15PM EST, April 8, 2015
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