$Alibaba (BABA.US)$
Most chinese tech stocks other than Baidu getting hit quite badly from china side mass sell off today. But baba is still not the one taking the lead in the fall. Guess why? It has fallen over 17% already the past 5 days.
And the support at 129 is a strong support as well. It held the US-China trade tension fall on 2018. It should not break that easily. Thats why when people ask for you to short at this level, its equivalent as asking you to buy at the top of 319 knowing it is the ATH.
Even if 129 should break, it will break only after a test and a rebound. Which if you shorted at 132, you will get stopped out pretty easily when it rebounds.
Critical supports do not slice through just like that. If you have been trading in the markets long enough you'll know critical supports only breaks immediately if it is a black swan event.
There is a saying, Buy the Dip, Sell the Rip. You dont sell the dip and buy the rip.
Similarly, you dont buy high and sell low!
However with all this being said, BABA is still a downward trend and although some early signals of an accumuation phase is in motion, I still have not gotten the 2nd and 3rd signal which will confirm the next phase which what many of you will call ''To the Moon Phase''.
So it is not advisable to just blindly buy any dips here yet as BABA may still push below the 129 support despite I have a strong feeling 129 is the bottom as the next critical support is all the way down at 108.
As always, Trade Safe & Invest wise!