$Alibaba (BABA.US)$ we closed back above 120 again. Another ...
$Alibaba(BABA.US$ we closed back above 120 again. Another higher vol day with a wick at the bottom with small candle body. Bulls basically absorbed all those selling pressure.
I can't see anything but bullish price action on baba. Until it can show a high vol sell off with large candle will I switch my bias to bearish.
I did mention the 1st hour candle was important. It did hit selling climax with above average vol and it continued to dip lower bit by bit before Fomc. Until we hit around 118 which was the support for this rally which we saw a reversal there.
If we closed higher than 122, this will be the perfect shake out candle before the next rally. We will see this week as it is OpEx week and we will likely trade in a range until Friday. There is a huge amount of puts at the 120 strike. Which I believe will support the price above those levels.
Calls are only high at around 130 strike. Which means we have upside to 130 by Friday but not likely to go above that for this week.
Monitor closely this price targets and know what are your moves. If anything, yesterday was a good chance to average lower with a small risk as your cut Loss would be right below 117.
I sold ATM puts at strike 117 yesterday which was right below 120 put strike with high OI expiry this Friday. Let's see if I make a good 30% profit by this Friday off my puts if it stays above 118.
As always, trade safe & invest wise!
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丁蟹NA : Crab approves this
Chillax guy : Sure bo?
Matthew D : Indeed! Was worried for a second when US dumped to 115 ADR, but recovered almost immediately after FED confirmed tapering
Investing 101 OP Matthew D : It was at 117.80. Didn't go to 115. You meant after conversion to HK at 115?
Investing 101 OP Chillax guy : We will see. There is no 100% certainty. Otherwise everyone will be Warren buffet.
Matthew D : Yeah adr price
Path To Wisdom : too early, relax lah.
Investing 101 OP Matthew D : Ohh. ADR is US shares. Haha when you said 115 I thought my tradingview had error.
Investing 101 OP Path To Wisdom : Yes still early. Thus any entry need a tight stop loss.
Thelord : Waiting for a Santa rally
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