$Alibaba (BABA.US)$ Baba is indeed dropping in volume despit...
$Alibaba(BABA.US$
Baba is indeed dropping in volume despite price getting lower. This is signs of shorting getting lesser at this levels as risk to reward Is no longer as tempting. However, this also shows that there is very little buyers at this levels otherwise there would be a large increase of volume with a green day.
Baba is indeed dropping in volume despite price getting lower. This is signs of shorting getting lesser at this levels as risk to reward Is no longer as tempting. However, this also shows that there is very little buyers at this levels otherwise there would be a large increase of volume with a green day.
The technical rebound is coming soon, however do not rule out the fact it may only come after touching 129 critical support and thus the reason my calls were bought out to Jan expiry in case that was the case. This is the reason I mentioned it was a risky move as you do not know if it will come this week or only after touching 129 support. If it does fall to 129, that will be a zone where many buyers are camping at and it will be the point I average down on my calls to capitalise on the rebound after that for a higher profit potential.
However do note if it breaks 129 without any significant rebound, it will be a cut loss for me as it means that baba room to fall will go all the way to 123 and even 110s. In my opinion I do not see this happening yet due to low selling volume even before touching the 129 zone. But you do not rule out the possibilities it may happen and that's the reason for risk management.
As always, trade safe & invest wise!
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103118232 : so still going down
Investing 101 OP 103118232 : If you mean overall trend, yes. It is still downward. The earnings day broke the potential of a recovery. But a point of reversal imo based on volume and price is not far away. May take a few months but based on the buying volume coming in compared to selling volume, there signs of a weakening downtrend. Which means reversal of trend is on its way.
Investing 101 OP 103118232 : When that signal is clearer, I will evaluate again and will post updates. For now we need to make sure baba stays above 129 first. Because if it breaks, there will be alot more sellers and alot less buyers which will skew the volume towards the selling side.
Investing 101 OP : 1st signal is a divergence of volume and price comparing 4th Oct and yesterday. The next divergence to confirm the signal of weakening downtrend will have to see the rebound incoming or after it touches the 129.