Has Alibaba found a Bottom? So far no. for NYSE:BABA by Walkerwc2

Alibaba (BABA) has been in a free fall down 36% since October 26th, 2020 when rumors began circulating that he had gone missing or had been arrested by the Communist Chinese Regime ( CCP ) that same month. Another factor that helped led to the sell off was rumors that Alibaba might be delisted form the NYSE. On Thursday (BABA) fell below $200 which had been a key support, but quickly recovered Friday to $205. At this $200 mark I believe Alibaba has been able to find a support and can start making a move to the up side. Currently is has a strong resistance at $230 which once broken and turn into a massive up run. There are three main factors that led me to believe a major upturn is upon us with BABA. 1. The RSI had hit 30 (1d Chart) when it broke $200. It then quickly bounced off. So with a really low RSI we have a ton of run to run. 2. TTM Squeeze Consolidation. I have been using the TTM indicator for a while now and have found when the indicator starts to consolidate and major run to either side happens and we are currently seeing this consolidation happen. 3. Alibaba is in a descending triangle which means a breakout can happen to either side, this helps support reason 2 and can help fuel a break sooner rather than later. Once I see a Break I will be buying calls. Let me Know what you think.

Most Related Links :
usnewsmail Governmental News Finance News

Source link

Back to top button