Come dowwwn BABA

2019年11月8日

BABA has been in a clear uptrend with a series of higher highs and higher lows but there are signs that it needs to correct to the downside short term- 177 is a reasonable target. We see from the graph several signs; price is above the point of control (red line on the volume profile, sufficient Fibonacci extensions from the most recent impulse wave have been met (the 1.618 can be used as a stop for any shorts), MFI is at a very high reading (unprecedented in the last 6 months), and the stock is currently just over 2 ATR (4.53 x 2 = 9.06) away from the mean where the mean is defined as the middle of the Keltner channel. Based on a .618 retracement of the most impulse wave up, the POC, and the mid line of the Keltner channel there is a high probability that 177 will hit. Furthermore there seems ot be a clear indication that the stock is under distribution by institutional investors per the Accum/ Dist line which is showing clear divergences with respect to price, this is shown in to separate ways on the graph. As always no matter how sure one is of a stock going in any given direction there is always a double digit chance it will not. Should you short please have a stop in place and/ or wait for 2 - 3 consecutive trading days with no new high made. Please ask any questions