JICPT| BABA gapped down on missed earning expectation

Hello everyone. BABA plunged by more than 10% in US after earnings missed expectation. Days ago, I've published an idea that I drew demand zone around 162-164(refer to the linked idea). Price got response at the first place to rebound to $171.

However, the zone got violated firmly soon. Demand zone turns out to be supply zone. To be more specific, if the solid structure got violated, better square your position. Price is likely to go against you as momentum has changed.

I've marked the yellow zone in the daily chart. In addition, the downtrend line has been respected well on the weekly.

With the missed earnings, BABA has been down 5.34% in HK market, whilst plunged by over 11% in the US. An overreaction?

Price is approaching previous low and seek some support from that level. Fundamentally, 20% plus year-on-year growth is still not too bad. I'm still bullish on the long term and will load some HK tech ETF which have huge exposure to BABA and Tencent.

What do you think? Give me a like if you're with me.

Comment:

Previous low got violated with possible long squeeze. The below support level is around $130.

Comment:

In the morning session, we got an 'early' formation of bullish candle. Gotta check the daily one later