Baba's Overdue Update
My previous update on Alibaba still contains a lot of relevant information. I suggest checking out the link below to find out more detailed data on my thesis for Alibaba.
Potential Reverse Head and Shoulders Pattern
This potential reverse heading shoulders is still in play. If this candlestick formation completes, then it would be a very polished development in the long-term picture.
Channeling Price Range
This price channel that I mentioned in my previous post. It is also still in play. The support and resistance levels are still valid. If the price session dips below the support of this channel, it would be very barish. However, if the price breaks out above resistance, then it would be a very bullish development in the long-term picture.
Medium-Term Outlook
The next two charts illustrate how I am viewing the medium-term time frame.
Directly below, you can see a potential bull flag in the charta. I have highlighted several times how the price has rebounded off of the $80.00 pricecharts. This is indicated by the orange arrows. This is a multiple bottom.
The more times a support line acts as support, then the stronger the technical level will be. This is the ultimate support level to watch.
If the price does dip below that $80.00 support, then the next level I would assume the price will reach is the next major support level, a short-term Fib level. That would be at the $73.00 price.
Currently, the market is showing signs of bullishness to start the month of November. If this continues, then we might see BABA's price climb to the short-term resistance I have highlighted.
The price must move above this line for me to feel bullish, in the short-term only. If the price can climb above the medium term resistance line, then that would look a lot more bullish in the long-term. This would indicate a change in the bearish trend to a flat or possibly bullish trend. And it would appear that the reverse head and shoulders pattern might receive condirmation.
Whichever way BABA goes, these are the horizontal levels to watch for reversals or breakouts/breakdowns.
Conclusion
Chinese economic data has been the main factor that has been holding back any chinese equities from a rally. I think improving economic data is the most necessary variable to provide strength in chinese markets.
I am still long-term bullish on this great company. The medium-term and short-term vectors are still downward, which keeps me from entering into any long positions so far. So, I am still bearish in the short-term, purely based on the technical trends. But if the price can climb above the short-term resistance, then a short-term bullish swing trade will look like a good idea to me.
As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Give some of your investments time and know when to cut your losses. Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.
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SpyderCall OP : @102640653
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Here is some BABA analysis. I will check out Tencent a little later. Sorry for the wait
102640653 : Thanks . Just to let u know . Alibaba n Tencent results are around the corner which may be the catalyst needed for it to move up much further. Last quarter results were above expectations n if this quarter results again above expectations then the picture will be changed to bullish. Along the way many brokerage houses set prices target above 110 plus which showed this undervalue because China economy not in favour yet. Good luck
SpyderCall OP 102640653 : I totally forgot about their earnings. Good call out on that.
102640653 : Looks like a new trend have been formed on hangseng n Shanghai . Waiting for Tencent updates . Looking for a strong uptrend in hongkong market to levels above 20500-21000 by end of year. If this trend is true n upcoming results from Alibaba , Tencent are strong. Good luck . When free can do a update on Tencent n hang Seng index too .
102640653 : Thanks
SpyderCall OP 102640653 : sure.... when is BABA's earnings release anyway?
102640653 : 16th November for baba
102640653 SpyderCall OP : November 15 for Tencent
102640653 SpyderCall OP : Both the stock r performing strongly today with hangseng above 17500. There’s is one more stock nio . It’s quite weak recently but I know there r going to move up much higher toward $12 plus from the current 7.50 plus
102640653 : Some r saying it’s result is today
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