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.
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.
Trade active:
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.
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.