BABA is at a strong level ahead of its next upcoming earnings, I am looking for it to continue within its already formed parallel channel on the weekly chart. The daily shows a strong rejection of its 50ema, consequently breaking a previous swing high. the break indicates possibility of bullish momentum through the level. The current consolidation phase into the long term trend and the consolidation occurring on the long term volume profile POC, all act as positive confluence to the general idea of a mid-long term buy position on BABA. CN50 is also showing great strength on the monthly chart, which is a great confluence with BABA's overall performance.Constriction of Bollinger daily bands is an added confluence, indicating the potential for increased volatility and a large move to come out of this consolidation phase in the near term.
I have entered a large long position, with stops shown at levels shown on chart to allow the trade to breath in the midst of unexpected volatility around earnings etc. Stops and tp may be adjusted as conditions change.
Goodluck trading ;)
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.