To The Moon

1D chart of BABA as of 30Apr2022

From the 1D chart of $BABA above, we can see that the stock has been on a perpetual downtrend.

The Stochastic indicator points to an uptrend and the MACD is about to confirm a cross over (a typically buy signal). What is interesting is that the 3 EMA lines are also converging. Typically when they converge, it also serves as a signal for the reversal of the downtrend. It is essential that the most recent downtrend fail to challenge the 52 week low of 73.28. with the candle finally touching the MA50 line, there is hope that the price is moving away from the bearish sentiments.

Interpretation of MA50 & MA200 lines

Using the MA50 line (as a short term trend outlook), a candle underneath the MA 50 line can imply a bearish zone and a break above the MA50 thus can also read as stock getting less bearish in the short term. We can also use the MA200 line for bearish and bullish sentiments for the stock - this represents a longer-term where it can be typically treated as an "annual" outlook.