Has BABA Finished Looking for Bottom?

4 окт. 2021 г.

BABA showing a potential breakout from bullish RSI divergence while hitting a strong area of support on 1D timeframe.

I will be watching the $145 - $138 range closely for support in the coming week.

Bull Case
Expect PA to retest and find resistance at the $158 region.
A break, retest, and support of $158 would act as confirmation of likely further bullish momentum.

Bear Case
Retest and rejection at $158 could see price push below $145 - $138 support band.
A break below these levels could see PA push lower to $125 - $122 areas.
If $125 - $122 support is broken PA likely to reach ~ $100 level.

The Trade
Basis: $150.73
Stop loss: Watching for a daily close below $135 and will reevaluate then.

All areas of support and resistance on chart derived from Price action, fibonacci clusters, linear regression analysis and corresponding intersection areas of aforementioned.

29 окт. 2021 г.

Сделка активна

Green path realized.

Price action support found in $145-$138 band and pulling back at previously identified $179 resistance.

Options call contracts closed on 10/22 for + 244% gain.
Still holding shares at $150.73 basis.

Price currently holding 38.2% support at $167 with RSI holding at about 54, but we may see price pull back to $162-$160 while seeing testing RSI at 50-48.
I will be watching this region for support in this case.

If price continues to push up and we see RSI moving into 60-61 region, I expect to see a break of $180, with a likely quick pop to $200 or higher to fill out what could be a wave 3.

Still holding. Still looking profitable.