Alibaba - BABA long with $120 target

Yesterday the community entered a long on BABA after we backtested a key level of significance and the falling wedge as support.

The chart is prettty good, a completed harmonic below support, spring and break of the falling wedge to get above support before backtesting that level as support once again, whilst at the same time showing bullish divergence... No need for anything else.

We entered with 5x leverage at 83.43 and the profit taking levels are defined. Tomorrow is earnings and so this is a risky trade, earnings is like the lottery and does take your edge away as we witnessed with Spotify. However, we follow the charts, and they suggest upside.

120$ THIRD TARGET -- LETS GO

Comment:

Well that's what earnings can do. We are still in the trade as we are floating around the stop loss and I want to see some more PA around this level before closing it out

Comment:

As we said to the community and to many comments below, the 78 level is a key level of support. We failed to break down from it and yesterday held it as support - hence we are still in the trade and looking to close out after a rally or a bearish breakdown below 78.

Comment:

Got to love that bearish backtest of the 78$ level. Perfect ta. Now we look for two things, a higher low or a breakdown to 60$.