Why is BABA still Bullish?

Good morning traders, today we want to show you our analysis in BABA and explain why we consider that this stock continues in a clear uptrend beyond the correction that it is going through the last weeks.

🔸As we can see in the weekly chart, this stock has consistently generated higher highs and lows from the bottom in 2015.

🔸One characteristic that these weekly corrections have is that the majority usually generate a decrease of more than 20%, and the current movement is not the exception.

🔸From historical highs, in November, the price made a downward movement of more than 30% towards the level it is currently at, which has generated a certain alert in many traders that had bullish positions.

🔸As we said previously, this series of highs and lows have not yet been penetrated downwards, so there is still the possibility that the price will find support in the area where it currently is, and that there is also the Ascending Trendline.

🔸It is an area where there will most likely be an interesting demand.

🔸Anyway, we always have to be careful and analyze all possible scenarios so that nothing takes us by surprise.

🔸In case the price manages to break the trendline, and the last low (support zone), we will consider that there may be a change in trend or a more pronounced correction. Until then, the scenario remains a healthy uptrend.