BABA has surged really nicely after several months of downtrend bouncing from the low of ~$57 to inside the current Bearish OB . This OB is inside the OTE Short zone of this last downward leg.
Given the overall trend is still down, we can assume this up leg is a short squeeze and will pullback soon to test support.
To support the idea, we also have an ongoing daily bearish divergence on the macd histogram.
Given the overall trend is still down, we can assume this up leg is a short squeeze and will pullback soon to test support.
To support the idea, we also have an ongoing daily bearish divergence on the macd histogram.