To The Moon

$Alibaba(BABA)$ - Daily Chart Analysis

https://www.tradingview.com/chart/BABA/v40LW9rm-BABA-6-19-2022/

This one is not looking good for buyers.

End of October 2020 saw BABA reach all-time high around 319. This was the last time price saw this high.

By Mid November 2020, price dropped and fell below the 50ema. This was very important because the 50ema was acting as Dynamic Support throughout the entire previous uptrend. This signaled weakness and possible end of uptrend for BABA.

By January 2020, price had fallen to 221. That was more than a 40% drop from the all-time highs back in October 2020.

At 221, price found Support and bounced. The bounce up failed to make a higher high and price found Resistance at 269.

At this 269-resistance level, price was shot back down to support level at 221. Price now finds itself in a sideways range between 221-269 and this marks the end of the Uptrend for BABA.

At this time, we also saw a Death cross, 50 ema crossing below the 200 ema. This further signaled the bearish conditions for BABA.

In May 2021, price broke down from this sideways range. The range has now been deemed a Distribution stage. BABA is heading towards a downtrend.

Breaking down from support level at 221, BABA entered a Downtrend on July 2020.

So far, the downtrend has taken the price from 221 all the way down to 79.80. That’s almost a 65% drop.

The current downtrend has ben using the 50ema as Dynamic Resistance and so far it has given us 4 entries to enter trade short.

Every time the price has pulled back to the Dynamic resistance and the Stochastic has gave us an Over-bought signal, that’s been our signal to enter trade short.

When in a downtrend, if price pulls back to Dynamic Resistance, and we have Stochastic Over-bought signal…..we enter trade short.

Downtrend + Pullback to resistance + Over-bought Stochastic = Short entry

Price currently finds itself at dynamic resistance from a pullback and the Stochastic is overbought. This is entry #5 to enter trade short.

Will be entering trade short.

Entry: 102.24

Stop loss: 128

Target: 59.10, +41.92%, 1.63 RR ratio

You can find my post along with my other trade ideas at https://www.tradingview.com/chart/BABA/v40LW9rm-BABA-6-19-2022/